What is the Commodity Channel Index (CCI): A chart indicator/oscillator used in the technical analysis of financial markets. Its primary purpose is to track market momentum, trend strength, and overbought/oversold conditions.
Category: Technical analysis indicator
How is the Commodity Channel Index (CCI) Used: The Commodity Channel Index (CCI) is an oscillator that measures the difference between the current price and the historical average price. In this way, it measures the current market momentum. When the CCI reading is above the zero line, it is an indication that the price of the underlying is above the historic average. Likewise, when the CCI reading is below the zero line, it is an indication that the price of the underlying is below the historic average. CCI is typically used to determine market momentum, trend changes, and appropriate trade entry/exit levels.
What Does the Commodity Channel Index (CCI) Consist of: The Commodity Channel Index (CCI) is presented as a line that is unbounded, with fluctuations above and below a zero line. Historical CCI levels are used to determine if a market may currently be overbought, oversold, or neutral. The indicator is usually placed either above or below the price chart.
What Does the Commodity Channel Index (CCI) Look Like:
IMPORTANT: TheTechnicals.com makes the information on this website available as a service to be used for informational purposes only. While we have tried to provide accurate and timely information, and have relied on sources we believe to be reliable, the site may include inadvertent technical or factual inaccuracies or omissions. We do not warrant the accuracy or completeness of the materials provided.
Neither TheTechnicals.com nor any of its affiliates, directors, officers or employees, will be liable or have any responsibility for any loss or damage that you may incur in the event of any failure or interruptions of this site, or the data contained in it, or from any other cause relating to your access to, inability to access, or use of this site or these materials.