CCI Average: Difference between revisions

Line 1:

Commodity Channel Index Average, along with [[Comm Channel Index|Commodity Channel Index]], is commonly used for determining cycle beginning and ending in futures markets. This indicator may also help to identify buy and sell opportunities.

<br>

CCI takes a security's change in price and compares that to its average change in price. CCI's calculation produces positive and negative values that oscillate above and below a Zero Line. Typically a value of 100 is identified as overbought and a reading of -100 is identified as being oversold. However, it is important to note a couple of things. Actual overbought and oversold thresholds can vary depending on the financial instrument being traded. For example, a more volatile instrument may have thresholds at 200 and -200. Frequently, overbought/oversold conditions are seen as a precursor to a price reversal. However, when using CCI, overbought and oversold conditions can often be a sign of strength, meaning the current trend may be strengthening and continuing. When applied to a chart, this indicator contains three plots, displayed in a separate subgraph from the price data.

== Default Inputs ==

'''CCILength (14)''' - number of bars used for CCI calculation.<br>

'''CCIAvgLength (9)''' - number of bars used for calculation of the CCI average.<br>

'''OverSold (-100)''' - value used to identify oversold market. <br>

'''OverBought (100)''' - value used to identify overbought market.

== Plots ==

'''Plot1 (CCI, Yellow)''' - CCI line.<br>

'''Plot2 (CCIAvg, Red)''' - average of the CCI. <br>

'''Plot3 (OverBot, Dark Green)''' - overbought level reference line. <br>

'''Plot4 (OverSld, Dark Green)''' - oversold level reference line.

<div style="background-color: #E3FBE5;">'''Note''': All the plots will be displayed in a separate sub chart from the price data when the indicator is applied to a chart. </div>

[[Category:Pre-built Indicators]]

@@ Line 1: / Line 1: @@
+Commodity Channel Index Average, along with [[Comm Channel Index|Commodity Channel Index]], is commonly used for determining cycle beginning and ending in futures markets. This indicator may also help to identify buy and sell opportunities.
+<br>
+CCI takes a security's change in price and compares that to its average change in price. CCI's calculation produces positive and negative values that oscillate above and below a Zero Line. Typically a value of 100 is identified as overbought and a reading of -100 is identified as being oversold. However, it is important to note a couple of things. Actual overbought and oversold thresholds can vary depending on the financial instrument being traded. For example, a more volatile instrument may have thresholds at 200 and -200. Frequently, overbought/oversold conditions are seen as a precursor to a price reversal. However, when using CCI, overbought and oversold conditions can often be a sign of strength, meaning the current trend may be strengthening and continuing. When applied to a chart, this indicator contains three plots, displayed in a separate subgraph from the price data.
+== Default Inputs ==
+'''CCILength (14)''' - number of bars used for CCI calculation.<br>
+'''CCIAvgLength (9)''' - number of bars used for calculation of the CCI average.<br>
+'''OverSold (-100)''' - value used to identify oversold market. <br>
+'''OverBought (100)''' - value used to identify overbought market.
+== Plots ==
+'''Plot1 (CCI, Yellow)''' - CCI line.<br>
+'''Plot2 (CCIAvg, Red)''' - average of the CCI. <br>
+'''Plot3 (OverBot, Dark Green)''' - overbought level reference line. <br>
+'''Plot4 (OverSld, Dark Green)''' - oversold level reference line.
+<div style="background-color: #E3FBE5;">'''Note''': All the plots will be displayed in a separate sub chart from the price data when the indicator is applied to a chart. </div>
+[[Category:Pre-built Indicators]]