{"id":2353,"date":"2010-02-16T01:21:37","date_gmt":"2010-02-15T19:51:37","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=2353"},"modified":"2010-02-16T01:21:37","modified_gmt":"2010-02-15T19:51:37","slug":"commodity-channel-index-application-chart","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/commodity-channel-index-application-chart\/","title":{"rendered":"Commodity channel Index : Application &#038; Chart"},"content":{"rendered":"<p>The Commodity Channel Index (CCI) was designed by Donald Lambert to identify cyclical turns in commodities. The assumption behind the indicator is that commodities move in cycles, with highs and lows coming at periodic intervals. Lambert recommended using 1\/3 of a complete cycle as a time frame for the CCI. If the cycle runs 60 days (a low about every 60 days), then a 20-day CCI would be recommended. For the purpose of this example, a 20-day CCI is used.<\/p>\n<h2>Calculation<\/h2>\n<p>There are 4 steps involved in the calculation of the CCI:<\/p>\n<ol>\n<li>Calculate the last period&#8217;s <strong>Typical      Price (TP)<\/strong> = (H+L+C)\/3 where H = high, L = low, and C = close.<\/li>\n<li>Calculate the 20-period <strong>Simple      Moving Average of the Typical Price (SMATP)<\/strong>.<\/li>\n<li>Calculate the <strong>Mean      Deviation<\/strong>. First, calculate the absolute value of the difference      between the last period&#8217;s SMATP and the typical price for each of the past      20 periods. Add all of these absolute values together and divide by 20 to      find the Mean Deviation.<\/li>\n<li>The final step is to apply      the Typical Price (TP), the Simple Moving Average of the Typical Price      (SMATP), the Mean Deviation and a Constant (.015) to the following      formula:<\/li>\n<\/ol>\n<p><strong>CCI = ( Typical Price &#8211; SMATP ) \/ ( .015 X Mean Deviation )<\/strong><\/p>\n<p>The CCI is a versatile indicator capable of producing a wide array of buy and sell signals.<\/p>\n<ul>\n<li>CCI can be used to identify      overbought and oversold levels. A security would be deemed oversold when      the CCI dips below -100 and overbought when it exceeds +100. From oversold      levels, a buy signal might be given when the CCI moves back above -100.      From overbought levels, a sell signal might be given when the CCI moved      back below +100.<\/li>\n<\/ul>\n<ul>\n<li>As with most oscillators, divergences      can also be applied to increase the robustness of signals. A positive      divergence below -100 would increase the robustness of a signal based on a      move back above -100. A negative divergence above +100 would increase the      robustness of a signal based on a move back below +100.<\/li>\n<\/ul>\n<ul>\n<li>Trend line breaks can be used      to generate signals. Trend lines can be drawn connecting the peaks and      troughs. From oversold levels, an advance above -100 and trend line      breakout could be considered bullish. From overbought levels, a decline      below +100 and a trend line break could be considered bearish.<\/li>\n<\/ul>\n<p><a class=\"highslide\" onclick=\"return vz.expand(this)\" href=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/cci-dell.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-2354\" title=\"cci-dell\" src=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/cci-dell-300x280.png\" alt=\"\" width=\"300\" height=\"280\" srcset=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/cci-dell-300x280.png 300w, https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2010\/02\/cci-dell.png 518w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Commodity Channel Index (CCI) was designed by Donald Lambert to identify cyclical turns in commodities. The assumption behind the indicator is that commodities move in cycles, with highs and lows coming at periodic intervals. Lambert recommended using 1\/3 of a complete cycle as a time frame for the CCI. If the cycle runs 60 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[6352,6355,6356],"class_list":["post-2353","post","type-post","status-publish","format-standard","category-general","tag-commodity-channel-index","tag-commodity-channel-index-application","tag-commodity-channel-index-chart","entry","has-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/2353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=2353"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/2353\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=2353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=2353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=2353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}