CCI (Commodity Channel Index)
Momentum Indicator
CCI (Commodity Channel Index)
CCI measures the current price level relative to an average price level over time.
Overview
The Commodity Channel Index identifies cyclical trends in commodities but works for any market. Readings above +100 suggest strong upward movement, while readings below -100 indicate strong downward movement.
Use Case
Useful for identifying new trends and extreme conditions.
Calculation
CCI = (Typical Price - SMA) / (0.015 × Mean Deviation)