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What is the Commodity Channel Index (CCI)?
The CCI measures how far the typical price has moved away from its recent average, scaled so that most readings fall between −100 and +100. It was designed for commodities but is used across stocks and indices too.
Typical price = (High + Low + Close) ÷ 3
CCI = (Typical price − SMA of typical price) ÷ (0.015 × mean deviation)
CCI = (Typical price − SMA of typical price) ÷ (0.015 × mean deviation)
How to read it
- Above +100 suggests a strong upward move away from the average. Below −100 suggests a strong downward move.
- Between −100 and +100 is the range the CCI sits in most of the time, and is often read as no strong trend either way.
- The CCI can stay above +100 or below −100 for a long stretch during a strong trend, so it is not a simple overbought or oversold signal on its own.
Common questions
Why 0.015?
It is a scaling constant chosen so that, on average, roughly 70 to 80% of CCI readings land between −100 and 100. You can change it in Settings, though almost every platform uses the standard value.
What is mean deviation?
The average distance between the typical price and its moving average over the same length, using absolute values so it is always positive.
Why does the pane sit below the price chart?
The CCI is not measured in rupees, so it needs its own scale. The two panes are lined up by date and move together when you scroll or zoom.