Indicator - CCI - Commodity Channel Index

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Calculation CCI - Commodity Channel Index



CCI calculates the distance between a price and its average over x periods divided by 1.5% of the standard deviation. CCI=(M-MM)/(0.015*D)
M=(H+L+C)/3
MM=moving average on M with n days
H:high
L:low
C:close
D: standard deviation on the moving average.

Interpretation CCI - Commodity Channel Index



CCI shows variations of price compared to their statistical average.
It is an indication of market speed. \nA high value of CCI (>100) indicates an overbought zone, a low value of CCI (-100) indicates an overbought zone.
A divergence of price and CCI is an indication of a future correction.

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