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NIFTY

10659.65      74.90 0.71%

BANK NIFTY

25782.45      192.80 0.75%
ACC 1572.00 (1.20%) Link
Symbol     LTP Chng%
J&KBANK 47.10   + 12.28
RUPA 355.55   + 9.91
LAXMIMACH 6153.75   + 5.83
GRAPHITE 1059.00   + 5.00
VMART 2206.20   + 5.00
Symbol     LTP Chng%
REPCOHOME 336.00    -9.41
DHFL 248.70    -7.48
IBULHSGFIN 846.00    -6.76
8KMILES 114.15    -4.99
VAKRANGEE 35.90    -4.90
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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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