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NIFTY

10491.05      108.35 1.04%

BANK NIFTY

25302.50      347.30 1.39%
ACC 1651.45 (1.17%) Link
Symbol     LTP Chng%
JPASSOCIAT 19.15   + 17.13
KITEX 246.40   + 10.20
MINDTREE 811.90   + 9.61
FORTIS 159.95   + 9.33
JINDALPOLY 357.20   + 8.05
Symbol     LTP Chng%
JUBILANT 883.80    -10.89
VAKRANGEE 189.70    -4.98
MTNL 23.70    -2.27
VINATIORGA 781.75    -2.09
SOMANYCERA 661.30    -1.93
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Commodity Channel Index (CCI)

Introduction

The Commodity Channel Index, first developed by Donald Lambert, quantifies the relationship between the asset's price, a moving average (MA) of the asset's price, and normal deviations (D) from that average.

The CCI is very popular amongst technical investors; today's traders often use the indicator to determine cyclical trends in not only commodities, but also equities and currencies.

Formula

CCI = (Typical Price - 20-period SMA of TP) / (0.015 * Mean Deviation)
Typical Price (TP) = (High + Low + Close)/3
Constant = .015

Advantage

CCI measures the difference between a security's price change and its average price change. High positive readings indicate that prices are well above their average, which is a show of strength. Low negative readings indicate that prices are well below their average, which is a show of weakness. The Commodity Channel Index (CCI) can be used as either a coincident or leading indicator.

Sample Calculation

Technical chart for CCI

Technical Indicators

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