Alphawick
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Commodity Channel Index

CCI

CCI measures the difference between a security's price and its average price. High positive readings indicate price is well above average, while low negative readings indicate it's well below. Originally designed for commodities, it works well with any tradable asset.

Interactive Chart

67.12
CCI

Parameters

Number of periods for CCI calculation.

Current Reading

Oversold
Neutral
Overbought
-200-1000100200
67.1Neutral

Quick Answer

Measures deviation of price from statistical mean. Developed by Donald Lambert in 1980, CCI was designed to identify cyclical turns in commodities. It measures the current price level relative to an average price level over a given period.

Trading Signals

Overbought

Bearish

CCI above +100, potential for pullback

CCI > 100

Oversold

Bullish

CCI below -100, potential for bounce

CCI < -100

Zero Cross Up

Bullish

CCI crosses above zero line

CCI crosses above 0

Zero Cross Down

Bearish

CCI crosses below zero line

CCI crosses below 0

What is CCI?

Developed by Donald Lambert in 1980, CCI was designed to identify cyclical turns in commodities. It measures the current price level relative to an average price level over a given period. CCI is unbounded, typically fluctuating between -100 and +100, but can go much higher or lower.

How to Read CCI

CCI above +100 indicates overbought conditions; below -100 indicates oversold. However, in strong trends, CCI can remain in extreme territory for extended periods. Look for CCI to return from extreme readings as a potential reversal signal.

Trading Signals

Key signals: CCI crossing +100/-100 (overbought/oversold), CCI crossing zero (trend change), divergences with price, and CCI trendline breaks. Zero line crossings are particularly significant for trend direction.

Trading Strategies

Zero line strategy: Buy when CCI crosses above zero, sell when it crosses below. Overbought/oversold: Wait for CCI to cross back from extreme territory. Divergence: Trade when price and CCI diverge at extremes.

Formula

Formula
CCI = (Typical Price - SMA) / (0.015 × Mean Deviation)
Typical Price = (High + Low + Close) / 3

Tips & Common Mistakes

Pro Tips

  • •Zero line crossings indicate trend direction changes
  • •Extreme CCI readings can persist in strong trends
  • •Use higher thresholds (+/-200) for stronger signals
  • •Combine with volume for breakout confirmation

Common Mistakes

  • •Trading against strong trends just because CCI is extreme
  • •Ignoring zero line as trend indicator
  • •Not adjusting period for different timeframes
  • •Using CCI alone without price action context

Best Used With

Moving AveragesSupport/ResistanceTrendlines
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