Индикатор Форекс Cci

What Is the Commodity Channel Index (CCI)?

The Commodity Channel Index​ (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold.

Developed by Donald Lambert, this technical indicator assesses price trend direction and strength, allowing traders to determine if they want to enter or exit a trade, refrain from taking a trade, or add to an existing position. In this way, the indicator can be used to provide trade signals when it acts in a certain way.

The Formula for the Commodity Channel Index (CCI) Is:

​CCI=×Mean DeviationTypical Price−MA​where:Typical Price=∑i=1P​((High+Low+Close)÷3)P=Number of periodsMA=Moving AverageMoving Average=(∑i=1P​Typical Price)÷PMean Deviation=(∑i=1P​∣Typical Price−MA∣)÷P​

How to Calculate the Commodity Channel Index

1. Determine how many periods your CCI will analyze. Twenty is commonly used. Fewer periods result in a more volatile indicator, while more periods will make it smoother. For this calculation, we will assume 20 periods. Adjust the calculation if using a different number.
2. In a spreadsheet, track the high, low, and close for 20 periods and compute the typical price.
3. After 20 periods, compute the moving average (MA) of the typical price by summing the last 20 typical prices and dividing by
4. Calculate the mean deviation by subtracting the MA from the typical price for the last 20 periods. Sum the absolute values (ignore minus signs) of these figures and then divide by
5. Insert the most recent typical price, the MA, and the mean deviation into the formula to compute the current CCI reading.
6. Repeat the process as each new period ends.

What Does the Commodity Channel Index Tell You?

The CCI is primarily used for spotting new trends, watching for overbought and oversold levels, and spotting weakness in trends when the indicator diverges with price.

When the CCI moves from negative or near-zero territory to above , that may indicate the price is starting a new uptrend. Once this occurs, traders can watch for a pullback in price followed by a rally in both price and the CCI to signal a buying opportunity.

The same concept applies to an emerging downtrend. When the indicator goes from positive or near-zero readings to below , then a downtrend may be starting. This is a signal to get out of longs or to start watching for shorting opportunities.

Overbought or oversold levels are not fixed since the indicator is unbound. Therefore, traders look at past readings on the indicator to get a sense of where the price reversed. For one stock, it may tend to reverse near + and Another commodity, meanwhile, may tend to reverse near + and Zoom out on the chart to see lots of price reversal points, and the CCI readings at those times.

There are also divergences—when the price is moving in the opposite direction of the indicator. If the price is rising and the CCI is falling, this can indicate a weakness in the trend. While divergence is a poor trade signal, since it can last a long time and doesn't always result in a price reversal, it can be good for at least warning the trader that there is the possibility of a reversal. This way, they can tighten stop loss levels or hold off on taking new trades in the price trend direction.

The Commodity Channel Index vs. the Stochastic Oscillator

Both of these technical indicators are oscillators, but they are calculated quite differently. One of the main differences is that the Stochastic Oscillator is bound between zero and , while the CCI is unbounded.

Due to the calculation differences, they will provide different signals at different times, such as overbought and oversold readings.

Limitations of Using the Commodity Channel Index

While often used to spot overbought and oversold conditions, the CCI is highly subjective in this regard. The indicator is unbound and, therefore, prior overbought and oversold levels may have little impact in the future.

The indicator is also lagging, which means at times it will provide poor signals. A rally to or to signal a new trend may come too late, as the price has had its run and is starting to correct already.

Such incidents are called whipsaws; a signal is provided by the indicator but the price doesn't follow through after that signal and money is lost on the trade. If not careful, whipsaws can occur frequently. Therefore, the indicator is best used in conjunction with price analysis and other forms of technical analysis or indicators to help confirm or reject CCI signals.

Definition

The Commodity Channel Index (CCI) is a momentum oscillator used in technical analysis primarily to identify overbought and oversold levels by measuring an instrument's variations away from its statistical mean. CCI is a very well-known and widely-used indicator that has gained level of popularity in no small part of its versatility. Besides overbought/oversold levels, CCI is often used to find reversals as well as divergences. Originally, the indicator was designed to be used for identifying trends in commodities, however it is now used in a wide range of financial instruments.

History

The Commodity Channel Index (CCI) was created by Donald Lambert and introduced in It first appeared in what was then known as Commodities Magazine.

Calculation

There are several steps involved in calculating the Commodity Channel Index. The following example is for a typical 20 Period CCI:

The Constant is set at for scaling purposes. By including the constant, the majority of CCI values will fall within the to range. There are three steps to calculating the Mean Deviation.

1. Subtract the most recent 20 Period Simple Moving from each typical price (TP) for the Period.
2. Sum these numbers strictly using absolute values.
3. Divide the value generated in step 3 by the total number of Periods (20 in this case).

The basics

The Commodity Channel Index indicator takes a security's change in price and compares that to its average change in price. CCI's calculation produces positive and negative values that oscillate above and below a Zero Line. Typically a value of is identified as overbought and a reading of is identified as being oversold. However, it is important to note a couple of things.

1. Actual overbought and oversold thresholds can vary depending on the financial instrument being traded. For example, a more volatile instrument may have thresholds at and
2. Frequently, overbought/oversold conditions are seen as a precursor to a price reversal. However, when using CCI, overbought and oversold conditions can often be a sign of strength, meaning the current trend may be strengthening and continuing.

What to look for

Overbought/Oversold

Because The Commodity Channel Index's primary function is to identify when a security is either overbought or oversold, it makes sense that anticipating future movements of price when these levels are crossed, is crucial to getting the most out of the CCI.

• Overbought and Oversold conditions can be used in their more traditional sense to identify future reversals. Remember true overbought/oversold thresholds values can and often do vary between instruments.

When price crosses above the overbought threshold, a fall in price may occur soon afterwards.

Price crossing below oversold conditions may signify a reversal to a rise in price.

• Overbought and Oversold conditions can also be seen as a sign of strength when using the CCI. The current trend may be strengthening.

During a Bullish Trend, price crossing above the overbought threshold may indicate strong confidence in the move and price will continue to rise.

During a Bearish Trend, price crossing below the oversold threshold may indicate strong confidence in the move and price will continue to fall.

Divergence

Momentum often does precede changes in price. Therefore, as with most momentum based oscillators, divergence between price and the indicator's reading should not be ignored. The Commodity Channel Index is no different. Divergences between CCI and price action can be a signal that changes in trend may be forthcoming.

Bullish CCI Divergence occurs when price makes a lower low while CCI makes a higher low.

Bearish CCI Divergence occurs when price makes a higher high while CCI makes a lower high.

Summary

The fact that The Commodity Channel Index indicator has been in use now for over 30 years is a testament to the value placed on it within the technical analysis community. Time and time again it is demonstrated how important momentum is when analyzing the market and attempting to determine future moves. Whether you are using CCI to confirm trends or to look for reversals, its momentum quantifying prowess should not go unnoticed. Like most indicators, CCI is best used not as a stand-alone indicator but in conjunction with others.

Inputs

Length

The time period to be used in calculating the SMA portion of the CCI (20 is the Default).

Source

Determines what data from each bar will be used in calculations. Close is the default.

Style

CCI

Can toggle the visibility of the CCI as well as the visibility of a price line showing the actual current price of the CCI. Can also select the CCI Line's color, line thickness and visual style (Line is the Default).

Upper Band

Can toggle the visibility of the Upper Band as well as select its value, color, line thickness and line style.

Lower Band

Can toggle the visibility of the Lower Band as well as select its value, color, line thickness and line style.

Background

Toggles the visibility of a Background color within the Bands. Can also change the Color itself as well as the opacity.

Precision

Sets the number of decimal places to be left on the indicator's value before rounding up. The higher this number, the more decimal points will be on the indicator's value.