Commodity Channel Index
Commodity Channel Index Technical Indicator (CCI)
Section titled “Commodity Channel Index Technical Indicator (CCI)”The Commodity Channel Index Technical Indicator (CCI) measures the deviation of the commodity price from its average statistical price. It can be applied to any financial instrument, not just commodities.
Signal Lines
Section titled “Signal Lines”The CCI has two signal lines:
High values indicate unusually high prices
Section titled “High values indicate unusually high prices”When the CCI value is high, it suggests that the price is unusually high compared to its average.
Low values indicate unusually low prices
Section titled “Low values indicate unusually low prices”When the CCI value is low, it indicates that the price is unusually low compared to its average.
Conclusion
Section titled “Conclusion”The Commodity Channel Index is a versatile indicator that can be used to analyze the deviation of prices from their averages for any financial instrument.