Define: Commodity Channel Index

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Definition: Commodity Channel Index



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Full Definition of Commodity Channel Index


The Commodity Channel Index (CCI), first introduced by Donald Lambert, is an oscillator used to help determine when a stock has been overbought and oversold. The Commodity Channel Index usually trends between +/-100.

The CCI measures the variances in the price of a given equity compared to the average price of the same equity.

A divergence occurs when the stock price reaches a new high but the Commodity Channel Index does not (reach a new high). The CCI is considered to be in an overbought state when it is above 100 and an oversold state when it is below -100. Buy signals can, therefore, be issued when the CCI rises above the -100 line and sell signals when the CCI drops below the +100 line.


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Synonyms For Commodity Channel Index


CCI


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Definition Sources


Definitions for Commodity Channel Index are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 25th March, 2020