Momentum oscillators
Commodity Channel Index (CCI)
CCI measures how far the typical price is from its average, scaled so most values fall between −100 and +100.
How to read it
- Above +100 shows unusual strength; below −100 unusual weakness.
- A move back inside the ±100 range can mark the end of a swing.
- Zero-line crosses show momentum changing side.
Settings
Default 20.
Example rule to test
Rule to test: buy when CCI(20) crosses above −100, exit when it crosses below +100.
Common mistake
Assuming ±100 are hard limits; CCI can go far beyond them.
Try it free on iTradeChart
For learning only. Backtests use past data and do not guarantee future results. Not investment advice.