CCI (Commodity Channel Index)

CCI (Commodity Channel Index) is a technical indicator that measures the deviation of the current price from its statistical average. It oscillates around zero and is not bounded — unlike RSI (0–100), CCI can reach any value. Originally developed for commodity markets, it's now widely used across all asset classes.

CCI uses the Typical Price and measures how far it deviates from a simple moving average, normalized by mean deviation:

TP = (High + Low + Close) / 3
SMA_TP = SMA(TP, period)
Mean Deviation = AVG(|TP - SMA_TP|, period)
CCI = (TP - SMA_TP) / (0.015 × Mean Deviation)

The constant 0.015 is chosen so that roughly 75% of values fall within ±100.

• CCI is NOT limited to 0–100
• Oscillates around zero
• Typical range: -200 to +200
• Extreme values possible: -300, +400, etc.

| Level | Meaning | |-------|---------| | > +100 | Overbought zone / strong uptrend | | 0 | Neutral / equilibrium | | < -100 | Oversold zone / strong downtrend |

Long entry (Buy)

• CCI crosses above -100 (leaving oversold zone)
• CCI > 0 (bullish momentum confirmation)

Short entry (Sell)

• CCI crosses below +100 (leaving overbought zone)
• CCI < 0 (bearish momentum confirmation)

Exit signals

• Take profit when CCI returns to zero
• Exit long when CCI crosses below +100
• Exit short when CCI crosses above -100

| Condition | Use case | |-----------|----------| | CCI(20) > 100 | Strong uptrend, possible overbought | | CCI(20) < -100 | Strong downtrend, possible oversold | | CCI(20) crosses above -100 | Buy signal (leaving oversold) | | CCI(20) crosses below 100 | Sell signal (leaving overbought) | | CCI(20) > 0 | Bullish bias | | CCI(20) < 0 | Bearish bias |

• CCI + RSI: CCI for trend direction, RSI for entry timing
• CCI + MACD: Double confirmation of momentum
• CCI + Moving Averages: Filter trades in trend direction

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 20 | Number of candles for SMA and mean deviation calculation |

• An asset can stay beyond ±100 for extended periods — wait for confirmation
• Lower timeframes capture short-term impulses
• Higher timeframes identify global trends
• Standard period is 20, but 14 is popular for faster signals
• Consider ±200 levels for stronger signals in volatile markets
• Available for all markets: crypto, stocks, forex