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NIFTY

10817.00      28.45 0.26%

BANK NIFTY

26537.40      248.30 0.94%
ACC 1839.00 (-0.08%) Link
Symbol     LTP Chng%
MINDTREE 684.15   + 9.49
GRUH 598.10   + 8.38
WABCOINDIA 7700.75   + 4.95
MPHASIS 794.35   + 4.23
GULFOILLUB 916.40   + 3.86
Symbol     LTP Chng%
JUSTDIAL 557.65    -12.24
ADANIPOWER 36.95    -9.33
RCOM 29.35    -9.27
JPASSOCIAT 20.85    -8.55
DEN 122.70    -8.06
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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