Commodity Channel Index (CCI) - Forex Glossary | ForexCracked
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Indicators & Analysis Intermediate

Commodity Channel Index (CCI)

Also called: CCI

Oscillator measuring price's deviation from its statistical mean — unbounded but typically ±100.

01

Definition

CCI (Donald Lambert, 1980) measures how far the typical price (HLC/3) is from its moving average, scaled by mean deviation. Despite the name it works on any market, not just commodities.

Readings >+100 = overbought / strong up-momentum. <−100 = oversold / strong down-momentum. Zero-line crossings are the classic entry signal.

03

Formula

CCI = (Typical Price − SMA(TP)) / (0.015 × Mean Deviation)
Typical Price = (High + Low + Close) / 3