| Commodity Channel Index - CCI |
 An oscillator used in technical analysis to help determine when an investment vehicle has been overbought and oversold. The Commodity Channel Index, first developed by Donald Lambert, quantifies the relationship between the asset's price, a moving average (MA) of the asset's price, and normal deviations (D) from that average. It is computed with the following formula:

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The CCI has seen substantial growth in popularity amongst technical investors; today's traders often use the indicator to determine cyclical trends in not only commodities, but also equities and currencies.
The CCI, when used in conjunction with other oscillators, can be a valuable tool to identify potential peaks and valleys in the asset's price, and thus provide investors with reasonable evidence to estimate changes in the direction of price movement of the asset.
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Timing Trades With The Commodity Channel Index - We introduce how to use this oscillator, which identifies cyclical trends, for determining buy and sell points.
Introduction to Technical Analysis - Here is an easy-to-understand tutorial on the various tools used in technical analysis, including moving averages, RSI, Bollinger bands, stock chart patterns, and much more.
Getting to Know Oscillators - Part 1: Introduction - Let's draw a brief overview of oscillators and take a preliminary look at the relative strength index, one of the better-known oscillators.
Channeling: Charting A Path To Success - Find out how to build these charts showing buy, sell, stop-loss and take-profit points, and even estimate length of trade. |
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