Commodity Channel Index
An oscillator that measures how far price is from its statistical average.
The CCI measures how far price has deviated from its average, expressed as a value that typically ranges from -200 to +200. Unlike RSI which is bounded 0-100, CCI can exceed its typical range, making extreme readings particularly meaningful.
Why It Matters
CCI excels at identifying cyclical turns in price. When CCI moves from extreme negative territory back toward zero, it often signals the beginning of an upward price cycle. The reverse applies for downward cycles.
Settings Explained
Direction — Bullish, bearish, or both.
Period — Calculation period. Standard is 20.
Overbought Level — Standard is +100. Values above suggest strength (or overextension).
Oversold Level — Standard is -100. Values below suggest weakness (or a potential bounce).
Look Back Mode — How far back to calculate.
Example Use Case
You build a strategy that enters long when CCI crosses above -100 from below (exiting oversold territory) and exits when CCI crosses above +100 (reaching overbought). This captures the full cycle from oversold to overbought.
CCI readings above +200 or below -200 are considered extreme. These rarely last long and often precede sharp reversals. They can be powerful entry signals for counter-trend strategies.