Commodity Channel Index - CCI

Commodity Channel Index - CCI is a timing system that is best applied to commodity contracts which 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 moving averages and a divisor reflecting both the possible and actual futures trading ranges. Although developed primarily for commodity brokers, the CCI could conceivably be used to analyze stocks as well.

Formula:

CCI=(M-MAVG)/(0.015xDAVG)

M=1/3 (H+L+C) H=Highest price for a period L=Lowest price for a period C=Closing price for a period MAVG=N-period simple moving average of M DAVG= 1/n x SUMi=1 to n (ABS(MI-MAVG))

The Continuous Commodity Index (CCI) booklet (in PDF Format) is available for download on the Commodity Education page, and represents the ninth revision of the original Commodity Research Bureau (CRB) Index.

 Chaikin Oscillator              Technical Analysis Terms              Commodity Selection Index 

Information is believed to be reliable and is provided 'as is' without warranty.