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NIFTY

10549.15      60.70 0.58%

BANK NIFTY

26163.40      60.75 0.23%
ACC 1432.85 (1.49%) Link
Symbol     LTP Chng%
QUESS 673.60   + 11.35
NAUKRI 1549.15   + 8.36
KIOCL 147.65   + 8.05
RNAVAL 12.75   + 7.59
YESBANK 177.85   + 7.36
Symbol     LTP Chng%
8KMILES 156.95    -4.99
VAKRANGEE 37.05    -4.88
IL&FSTRANS 11.10    -4.72
VMART 2530.70    -3.39
OBEROIRLTY 448.15    -3.07
View All

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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