Momentum

Commodity Channel Index

CCI

Measures how far the typical price deviates from its moving average, scaled by mean absolute deviation. Readings beyond +100 or –100 signal overbought or oversold conditions.

Tips

CCI can stay beyond +/-100 for long stretches in trending markets; treat the zero-line cross as a trend filter instead

Readings beyond +/-200 indicate extreme moves and are more likely to snap back; look for reversal candlestick patterns at those levels

Parameters

Period

2 - 100