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NIFTY

10663.40      -61.00 -0.57%

BANK NIFTY

26737.30      -56.95 -0.21%
ACC 1348.65 (-0.28%) Link
Symbol     LTP Chng%
RCOM 6.15   + 11.82
RPOWER 11.30   + 10.78
RELINFRA 127.15   + 10.61
RELCAPITAL 161.70   + 8.85
RHFL 25.70   + 7.31
Symbol     LTP Chng%
HSCL 96.90    -6.29
FINPIPE 465.35    -5.20
IBVENTURES 275.55    -4.95
REPCOHOME 322.45    -4.67
GVKPIL 5.55    -4.31
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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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