|Commodity Channel Index|
Commodity Channel Index
CCI is an oscillator that provides an indication of overbought or oversold markets.
The Commodity Channel Index, CCI, was designed to identify the beginning and the end of commodity market cycles by Donald Lambert. It has also proven effective for other markets. CCI compares the current mean price with the average mean price over a period of usually 20 days.
The CCI indicates the price is increasingly high compared to average prices as it moves towards +100. As the CCI drops towards -100, it indicates that the price is increasingly low compared to average prices.