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NIFTY

9873.30      -26.30 -0.27%

BANK NIFTY

24213.35      60.70 0.25%
ACC 1712.00 (-1.30%) Link
Symbol     LTP Chng%
STRTECH 207.20   + 19.98
RENUKA 16.55   + 10.33
JUSTDIAL 378.05   + 6.66
EROSMEDIA 234.30   + 5.71
DEEPAKFERT 299.45   + 5.64
Symbol     LTP Chng%
WABAG 602.95    -9.78
KEC 294.60    -5.35
CANBK 351.90    -5.21
SHILPI 42.80    -4.99
VIDEOIND 25.30    -4.89
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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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