Commodity Channel Index
CCI measures the current price level relative to an average price level over a given period of time. High values mean price is well above average, low values mean it is well below.
Dynamic Chart Demo
* This chart uses synthetic data to demonstrate the indicator's behavior in typical market conditions.
Core Usage
Advantages
- Very responsive to price changes
- Effective for identifying cycles
- Multi-purpose
Limitations
- Can be volatile
- Generates many signals
- Requires filtering
Calculation Logic
Understanding the mathematical logic behind indicators helps you interpret signals more accurately and avoid misuse in unsuitable market environments.
Common Trading Strategies
Zero-Line Cross
Trading based on the CCI crossing the zero line to confirm momentum shifts.
Extreme Exhaustion Fade
Wait for CCI to push beyond +200 (or below -200), then enter on the cross back inside the band — the assumption being the move is overextended and due to cool off.
Best For
"Identifying cyclical trends."
Note: Technical indicators are mathematical calculations based on historical price and volume. They should be used as part of a comprehensive trading system, not as a standalone entry signal.