Commodity Channel Index


Function Name: cci

Tags: None

Category: Trend

The Commodity Channel Index is used to identify the beginning and ending of cycles and works best when applied to futures markets that are cyclical or seasonal in nature. It is commonly used to identify buy and sell opportunities. A long position is indicated when the CCI exceeds +100 while a short position is indicated when the CCI falls below -100 but these values should be based more on your market analysis. For example, you may decide that for the market you are evaluating, a -125 indicates taking a short position while a +150 indicates taking a long position.

The Commodity Channel Index can be used as a signal for overbought and oversold markets, much like an oscillator. Breakouts above the CCIlong (L1) line indicate an overbought market and breakouts below the CCIshort (L2) line indicate an oversold market. The CCI often misses the early part of a new move because of the amount of time it spends in the neutral position (between the CCIlong and CCIshort lines). Many analysts believe the CCI Average crossing above or below zero identifies market conditions before the CCIlong and CCIshort lines are crossed.







Default Value: 14  |  Minimum: 1  |  Maximum: 9999


Type: Numeric



Default Value: 100  |  Minimum: 1  |  Maximum: 9999


Type: Numeric



Default Value: -100  |  Minimum: -9999  |  Maximum: 1


Type: Numeric