CCI is an oscillator that provides an indication of overbought or oversold markets.Overview...
Developed by Donald Lambert, the CCI is a trend-following system for commodities, which produce cyclical price patterns. It does not calculate length but is used as a timing tool. The assumption is that prices move in channels for prolonged periods. The market is oversold or overbought when the price moves too far away from the moving average value, which represents the centre of the market. The CCI Index can be used as a breakout system: Go long over the +100 line or go short below the -100 line. All positions are liquidated between the two lines.
An indicator designed for use in markets that follow definite cyclical patterns.
An index used in technical analysis. High values mean a potential future correction (downward movement in underlying asset) and low values potentially forecast a rally. Details in Donald Lambert's October 1980 article in Commodities Magazine.
The CCI is a timing system that is best applied to commodity contracts that have cyclical or seasonal tendencies. CCI does not determine the length of cycles. It is designed to detect when such cycles begin and end through the use of a statistical analysis which incorporates a moving average and a divisor reflecting both the possible and actual trading ranges. Although developed primarily for commodities, the CCI could conceivably be used to analyze stocks as well.
Developed in the early 1980's as a method of trend reversals. The trend is said to reverse when the CCI switches from negative (-) to positive (+) or vice versa. Also the CCI is commonly used as an overbought/oversold indicator when it reaches extreme levels. In many markets, a +200 or -200 signals a coming reversal.
CCI measures the variation of an instrument's price from its mean. High / low values indicate that prices have moved too far from their mean. The usual range is +/1 100 and anything outside this is overbought or oversold.
This oscillator measures how high or low prices are relative to their statistical mean. A high value means prices are relatively high and while a low value means the opposite. Chart Keys: Period: 60 COMMODITY FUTURE CONTRACT — Is a contract for the purchase or sale of a commodity which is made on an organized exchange under set rules and regulations.
Developed by Donald Lambert, the CCI is an indicator designed to identify cyclical turns in commodities. It may also be applied to stocks or bonds.
See on: Wikipedia Investopedia An oscillator used in technical analysis to help determine when an investment vehicle has been overbought and oversold. 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. It is computed with the following formula: CCI = (Price - MA) / (0.015 x D)
The Commodity Channel Index (CCI) is an oscillator originally developed by Donald Lambert. He introduced this new oscillator in an article published in the October 1980 issue of Commodities magazine (now known as Futures magazine).