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NIFTY

9347.40      40.80 0.44%

BANK NIFTY

22225.95      171.25 0.78%
ACC 1610.10 (0.17%) Link
Symbol     LTP Chng%
ALLCARGO 195.45   + 8.79
TVSSRICHAK 4174.85   + 7.18
MCLEODRUSS 192.10   + 6.43
NIITTECH 464.00   + 6.31
CUMMINSIND 1023.20   + 5.62
Symbol     LTP Chng%
SHILPI 165.90    -19.99
ZENSARTECH 833.00    -9.35
ADANIENT 139.90    -6.70
ICICIPRULI 398.70    -5.05
PNCINFRA 157.00    -3.92
View All

Commodity Channel Index (CCI)

Introduction

The Commodity Channel Index, first developed by Donald Lambert, quantifies the relationship between the asset's price, a moving average (MA) of the asset's price, and normal deviations (D) from that average.

The CCI is very popular amongst technical investors; today's traders often use the indicator to determine cyclical trends in not only commodities, but also equities and currencies.

Formula

CCI = (Typical Price - 20-period SMA of TP) / (0.015 * Mean Deviation)
Typical Price (TP) = (High + Low + Close)/3
Constant = .015

Advantage

CCI measures the difference between a security's price change and its average price change. High positive readings indicate that prices are well above their average, which is a show of strength. Low negative readings indicate that prices are well below their average, which is a show of weakness. The Commodity Channel Index (CCI) can be used as either a coincident or leading indicator.

Sample Calculation

Technical chart for CCI

Technical Indicators

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