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NIFTY

11551.75      81.00 0.71%

BANK NIFTY

28274.25      145.70 0.52%
ACC 1599.30 (0.34%) Link
Symbol     LTP Chng%
HCC 15.20   + 18.75
WELCORP 140.80   + 11.48
SHK 219.40   + 9.15
PFS 18.25   + 7.99
JINDALSAW 85.45   + 7.08
Symbol     LTP Chng%
GESHIP 284.55    -6.12
FEDERALBNK 81.50    -5.51
TTKPRESTIG 5962.80    -5.04
GRAPHITE 1041.75    -5.00
TNPL 300.50    -4.27
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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