Contents x
    Commodity Channel Index (CCI)
      • Dark
        Light
      Contents

      Commodity Channel Index (CCI)

        • Dark
          Light
        Article summary

        DXcharts powers DXtrade, DXfina, and FinCharts.
        Check our website to find more information about DXcharts library.

        Commodity Channel Index (CCI) is a momentum oscillator that represents security price's variation calculated from its statistical mean (average absolute deviation). To plot the variation, CCI first calculates the difference between a Typical Price (arithmetic average of the high, low, and close prices) and its Simple Moving Average (SMA). Then, the indicator divides the result by the statistical mean of the typical price. 

        CCI has two adjustable overbought and oversold levels and the zero line. When the oscillator's line moves above the zero line, it indicates strengthening of the market momentum. Moving below the zero line indicates the market momentum weakening.

        CCI = [TPn - SMAn (TP)] / [0.15 x MDn (TP)]

        where:
        TPn – Typical Price for n-period
        SMAn – Simple Moving Average for n-period
        MDn – Mean Deviation for n-period
        0.15 – Lambert's constant
        n – the number of periods

        Commodity Channel IndexCommodity Channel Index

        INPUTS

        InputDescription
        LengthThe number of periods the indicator uses to calculate the CCI
        OverboughtThe price value to fix the overbought level at
        OversoldThe price value to fix the oversold level at

        PLOTS

        The plot renders the data you are working with on the chart. You can show/hide a plot by clicking the corresponding item in the settings. Every plot has a set of basic settings that you can change: color, weight, and type.

        PlotDescription
        CCIThe Commodity Channel Index plot
        OverboughtThe overbought level
        OversoldThe oversold level
        ZeroThe zero level
        Color

        Click the color rectangle under the plot's name to open the palette. Use the slider at the bottom to set the opacity of the color.

        Palette

        To create a custom color:

        1. Clickto open the color picker
        2. By using the slider at the bottom, adjust the main color
        3. Then, set a shade for the main color on the palette

        The custom-created colors are added to your palette. To remove a custom color, drag it out of the palette.

        Weight
        Change the value (in px) to adjust the thickness of the plot.
        Type
        The following plot types are available:
        • Linear. The plot is displayed as a line.
        • Column. The plot is displayed as a histogram.
        • Difference. The plot is displayed as a line which represents the difference between High and Low prices of the bar.
        • Points. The plot is displayed as points.
        • Text above candle. The plot is displayed as the price labels above candles on the chart.
        • Text below candle. The plot is displayed as the price labels below candles on the chart.
        • Triangle above candle. The plot is displayed as triangles above candles on the chart.
        • Color candle. The candles on candle-type charts are highlighted with specified colors.

        OVERLAYING

        Check Overlaying to display the indicator on the chart. Otherwise, the indicator is shown in a study pane down below.

        Note: To reset the settings, click Restore to Default next to the SETTINGS: INDICATOR'S TITLE
        What's Next