Commodity Channel Index
Commodity Channel Index Technical Indicator (CCI)
Section titled “Commodity Channel Index Technical Indicator (CCI)”The Commodity Channel Index (CCI) measures the deviation of the commodity price from its average statistical price.
High and Low Values
Section titled “High and Low Values”High values of the index indicate that the price is unusually high compared to the average, while low values indicate that the price is too low.
Applicability to Various Financial Instruments
Section titled “Applicability to Various Financial Instruments”Despite its name, the Commodity Channel Index can be used for any financial instrument, not just commodities.
Two Techniques of Using CCI
Section titled “Two Techniques of Using CCI”There are two basic techniques for utilizing the Commodity Channel Index.