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NIFTY

16887.00      -207.00 -1.00%

BANK NIFTY

30093.30      -260.95 -0.86%
ACC 2301.00 (-5.00%) Link
Symbol     LTP Chng%
COCHINSHIP 485.00   + 10.00
VIPIND 715.00   + 7.00
RVNL 36.00   + 7.00
LUPIN 722.00   + 6.00
AUROPHARMA 535.00   + 5.00
Symbol     LTP Chng%
SUZLON 8.00    -9.00
ADANIGREEN 2074.00    -8.00
ESSELPACK 251.85    -7.66
EICHERMOT 3463.00    -6.00
INDIACEM 254.00    -6.00
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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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