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10147.55      -5.55 -0.05%

BANK NIFTY

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ACC 1817.20 (-0.47%) Link
Symbol     LTP Chng%
JAICORPLTD 132.80   + 19.96
RAIN 181.00   + 16.74
RIIL 570.40   + 16.72
PUNJLLOYD 25.00   + 10.86
TIDEWATER 7171.45   + 10.23
Symbol     LTP Chng%
RTNPOWER 6.20    -6.06
SHILPI 21.85    -5.00
RELIGARE 44.95    -4.97
HFCL 34.20    -4.87
JPASSOCIAT 17.65    -4.85
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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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