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Commodity Channel Index

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Commodity Channel Index
An index used in technical analysis. High values mean a potential future correction (downward movement in underlying asset) and low values potentially forecast a rally. Details in Donald Lambert's October 1980 article in Commodities Magazine.

Commodity Channel Index
In technical analysis, an equation using a moving average to determine whether a commodity is overbought or oversold. It is calculated as follows:

CCI = (P - MA) / 0.015D

where:

P = the commodity's current price.
MA = a moving average of the price over a given period of time.
D = normal deviations from the moving average.

This has become a popular tool among technical analysts, who use it to find highs and lows in a commodity's price to make their investment decisions. Some even use it for equities and currencies, in addition to commodities.


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The Commodity Channel Index (CCI) was created to flag when cycles begin and end.
They are the relative strength index (RSI), commodity channel index and stochastic oscillator.
Other technical indicators include volume change, the Relative Strength Indicator (RSI) and the Commodity Channel Index (CCI).
 
 
 
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