Trends/Momentum oscillators

Commodity channel index

How far today's typical price is from its 20-bar average, measured in units of typical deviation.

Momentum oscillatorsBest on 3M, 6M, 1YAlso called CCI

Illustration of the commodity channel index shape. It is a sketch, not real price data.

What it shows

Donald Lambert's CCI uses the typical price (high + low + close ÷ 3). It subtracts the 20-bar average of the typical price and divides by 0.015 times the mean deviation.

Most values fall between −100 and +100. Readings beyond that mean price is farther from its average than usual.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Typical price = (high + low + close) ÷ 3.
Take its 20-bar average and mean deviation.
CCI = (typical − average) ÷ (0.015 × mean deviation).
Plot with lines at +100 and −100.

Starting values: Length 20; Constant 0.015; Lines +100 / −100. These are proposed and will be tuned on real price data before launch.

How to read it

The panel shows CCI.
Dashed lines mark +100 and −100.
Outside the lines is a larger stretch than usual.

Status labels you may see

Label	What it means
Above +100	CCI is above 100.
Between	CCI between −100 and 100.
Below −100	CCI is below −100.

What cancels it

Nothing cancels it.

What traders check next

How long CCI stays outside ±100.
Price trend.
Number of crossings of zero.

Limits

Unbounded, so extremes vary.
The 0.015 constant is a convention.
Noisy on short time frames.

Try it in forecastviz

Open any ticker and choose Momentum oscillators → Commodity channel index in the left menu.
Switch between 3M, 6M, 1Y to see how the picture changes.
Compare with Relative strength index and Stochastic oscillator on the same chart.

Open on a ticker

Questions

Why 'commodity'?

It was designed for commodity futures. It is used on any market.

Why 0.015?

So that about 70 to 80% of values fall within ±100.