CCI (Commodity Channel Index)

Indicator Description

CCI (Commodity Channel Index) is an overbought/oversold indicator that measures the market's overbought/oversold state by comparing the deviation of current price from the average price.

Function Information

  • Function Name: CCI
  • Input Parameters: High, Low, Close
  • Parameter Settings: timeperiod (default: 14)
  • Output: CCI value

Calculation Principle

CCI is calculated using the following formula:

Typical Price = (High + Low + Close) / 3
Mean Deviation = SMA(|Typical Price - SMA(Typical Price, timeperiod)|, timeperiod)
CCI = (Typical Price - SMA(Typical Price, timeperiod)) / (0.015 * Mean Deviation)

Where:

  • High is the highest price
  • Low is the lowest price
  • Close is the closing price
  • SMA is Simple Moving Average
  • timeperiod is the calculation period

Usage Scenarios

  1. Overbought/Oversold assessment
  2. Trend confirmation
  3. Divergence analysis
  4. Trading signal generation

Usage Recommendations

  1. CCI > 100 indicates overbought
  2. CCI < -100 indicates oversold
  3. Pay attention to CCI's zero-line crossovers
  4. Use in conjunction with other indicators
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