Commodity Channel Index: how far typical price sits from its 20-bar average, in units of mean deviation, with plus and minus 100 levels.
Overview
The Commodity Channel Index (CCI) shows how far price has moved from its average, in its own pane. Reference levels sit at +100 and -100.
The line and fill are green above zero and red below.
How it works
CCI = (source - SMA(source, 20)) / (0.015 x mean absolute deviation). The source is typical price, (high + low + close) / 3, by default.
The 0.015 constant scales the result so most readings fall between -100 and +100.
How to use it
- Some traders read moves above +100 as strong upside and below -100 as strong downside.
- Use returns inside the levels to see a move losing pace.
- Watch zero-line crosses for changes in direction.
- Look for divergence between CCI and price.
These are ways some traders read it, for learning. They are not trade signals.
Settings
| Setting | Default |
|---|---|
| Settings | |
| LengthNumber of bars used for the moving average and the mean absolute deviation of the source. | 20 |
| SourcePrice series measured by the CCI; the typical price hlc3 is the classic choice.Options: Close, Open, High, Low, HL2, HLC3, OHLC4, HLCC4 | HLC3 |
| Upper LevelOverbought reference level, +100 classically. | 100 |
| Lower LevelOversold reference level, −100 classically. | -100 |
| Style | |
| CCI LineColor of the CCI line. | #787b86 |
| BullishLine and fill color while the CCI reads above zero. | #089981 |
| BearishLine and fill color while the CCI reads below zero. | #f23645 |
| LevelsColor of the upper, lower and zero reference lines. | #787b86 |
Alerts
You can alert on its line crossing a value or the candle close (from the chart's + menu); checked while ZoroCharts is open.
Notes and limits
- Works on any symbol and timeframe; it only needs candle data.
- CCI has no fixed upper or lower limit.
Education only. Not financial advice. Indicators mark what happened on the chart; they do not predict what price will do. Trading futures, forex, crypto and other markets carries a high level of risk and may not be suitable for everyone.