The Commodity Channel Index (CCI), developed by Donald Lambert, is an oscillator used in technical analysis in order to measure the variation of a security’s price from its statistical mean. •The smaller the CCI period (look back period), the smaller the number of values between -100 and +100. Recognia identifies the following CCI events: A bullish event whenever the CCI rises above the +100% line. The CCI oscillates between several levels including: +100-100; 0 +200-200; These levels are often used as overbought and oversold levels. The Commodity Channel Index or CCI was developed by Donald Lambert in 1980. The commodity channel index (CCI) is an oscillator originally introduced by Donald Lambert in 1980.. A divergence occurs when the trading instrument’s price is making new highs while the CCI is failing to reach its previous highs. Commodity Channel Index (CCI-5) +100-100 Pristine CCI(5) Buy Signal O/B O/S +100-100 Anticipatory CCI(5) Buy Signal O/B O/S +100-100 Anticipatory CCI(5) Sell Signal O/B O/S +100+100-100 Pristine CCI(5) Sell Signal O/BO/B O/S Note: Pristine looks for buy signals in uptrends & sell signals in downtrends. Commodity Channel Index (CCI) indicator measures the deviation of the commodity price from its average statistical price. Commodity Channel Index •Lambert set the constant at .015 to ensure that approximately 70 to 80 percent of CCI values would fall between -100 and +100. Commodity Channel Index (CCI) Effect of CCI. The Commodity Channel Index by Barbara Star, PhD. The Commodity Channel Index indicator was designed by Donald Lambert and fits into the category of being a momentum indicator for those involved in technical analysis. A technical analytical standard that's often misunderstood, the Commodity Channel Index, which was developed by technician/programmer Donald Lambert more than a decade ago, offers a broad range of trading options to … The CCI indicator, the commodity channel index, is a momentum based indicator that falls under the oscillator classification. The indicator is a momentum-based one, and like many other indicators, it helps to tell the user when the asset is in a bullish or bearish trend.. Yet another celebration signalling the end of the previous bullish trend happens whenever the CCI subequently crashes below the … How To Read Commodity Channel Index CCI. It can also be used to judge the direction of a trend, help traders to make decisions on the directional bias of an asset, or provide information on whether to exit a trade. There are two main methods used by traders to interpret the Commodity Channel Index: looking for divergences and as an overbought/oversold indicator. Due to the lines on the indicator, it is often used as an oversold and overbought indicator. The third critical indicator is Williams' Percent R (%R), which I have modified from Larry Williams’ original parameters and created specific rules to utilize that are different than is seen in normal trading systems. PDF | This paper is focused on evaluating the trading rule of indicator commodity channel index (CCI), using selected agricultural commodities. Since its introduction, the indicator has grown in popularity and is now a very common tool for traders in identifying cyclical trends not only in commodities but also equities and currencies. - Free download of the 'Commodity Channel Index, CCI' indicator by 'MetaQuotes' for MetaTrader 4 in the MQL5 Code Base, 2005.11.29 Another is the Commodity Channel Index (CCI), developed by Donald Lambert. High values indicate that prices are unusually high compared to average prices. The +100 would be considered overbought as an example.