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23362.20      171.40 0.74%
ACC 1632.35 (0.78%) Link
Symbol     LTP Chng%
HINDPETRO 567.60   + 11.56
JMFINANCIL 129.80   + 10.19
JPASSOCIAT 12.65   + 10.00
KSCL 571.70   + 8.85
MANPASAND 845.75   + 8.39
Symbol     LTP Chng%
VIDEOIND 47.85    -9.97
RBLBANK 516.55    -5.32
SHILPI 40.70    -4.91
INFIBEAM 991.25    -4.88
SUNPHARMA 567.65    -4.04
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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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