CCI, The Commodity Channel IndexThe CCI is calculated by first finding the typical price for the period TP, which is one third of the sum of the high, the low, and the close for the period. The average mean deviation in the typical prices, MDTP, is calculated for over n periods, as is the mean of the typical prices, MATP. The CCI is then defined as,
CCI = (TPMATP)/(0.15 x MDTP)
Using the edit tool you can adjust the period over which the means are generated, and you can also select modified CCI, in which the typical price is calculated as one third of the sum of the close for the current period plus the highest high and the lowest low in n periods.
CCI generates a buy signal, when it crosses from below 100 to above 100. Similar it generates a sell signal, when it crosses from above 100 to below 100.
