{"id":12184,"date":"2026-05-22T13:38:20","date_gmt":"2026-05-22T13:38:20","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/cci-commodity-channel-index\/"},"modified":"2026-05-22T13:38:20","modified_gmt":"2026-05-22T13:38:20","slug":"cci-commodity-channel-index","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/cci-commodity-channel-index\/","title":{"rendered":"CCI (Commodity Channel Index)"},"content":{"rendered":"<p>The <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/commodity\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Commodity<\/a> Channel <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/index\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Index<\/a>, or CCI, was developed by Donald Lambert in 1980 to identify cyclical turns in commodity prices. Despite the name, traders use CCI today on <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stocks\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">stocks<\/a>, indices and forex. It measures how far the current price is from its statistical mean over a chosen period and is excellent for catching the start or end of a strong move.<\/p>\n<div><strong>Key takeaways:<\/strong>\n<ul>\n<li>CCI typically oscillates between &#x2212;100 and +100, but can extend far beyond in strong trends.<\/li>\n<li>Readings above +100 = potentially overbought; below &#x2212;100 = potentially oversold.<\/li>\n<li>Default period is 20; use higher for swing <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/trading\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">trading<\/a> and lower for intraday.<\/li>\n<li>Works best when paired with a trend filter to avoid fighting strong moves.<\/li>\n<li>Divergence between price and CCI often signals trend exhaustion.<\/li>\n<\/ul>\n<\/div>\n<h2 id=\"how-cci-is-calculated\">How CCI is calculated<\/h2>\n<p>CCI = (Typical Price &#x2212; N-period SMA of Typical Price) &#xF7; (0.015 &#xD7; Mean Deviation). Typical Price is (High + Low + Close) &#xF7; 3. The 0.015 constant scales the indicator so most values fall between &#x2212;100 and +100. Indian charting platforms compute it automatically &#x2014; you just choose the period.<\/p>\n<h2 id=\"standard-signals\">Standard signals<\/h2>\n<ul>\n<li><strong>Cross above +100:<\/strong> Possible start of an upward trend; <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bullish\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">bullish<\/a> breakout signal.<\/li>\n<li><strong>Cross below &#x2212;100:<\/strong> Possible start of a downtrend; <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bearish\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">bearish<\/a> breakdown signal.<\/li>\n<li><strong>Return inside the band:<\/strong> A move from outside to inside &#xB1;100 can indicate trend exhaustion.<\/li>\n<li><strong>Zero-line crosses:<\/strong> Crossing above zero = bullish momentum; below = bearish.<\/li>\n<\/ul>\n<h2 id=\"cci-for-trend-confirmation\">CCI for trend confirmation<\/h2>\n<p>Many traders use CCI not for reversal but for trend confirmation. If a stock breaks above resistance and CCI is above +100 with rising <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/volume\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">volume<\/a>, the breakout is more likely to sustain. Conversely, a breakout with CCI rolling over is a warning sign.<\/p>\n<h2 id=\"worked-example-on-bank-nifty\">Worked example on Bank <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nifty\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Nifty<\/a><\/h2>\n<p>Bank Nifty consolidates around 48,000 with CCI hovering near zero. The index then breaks 48,300 and CCI spikes to +180. A trader holds long until CCI falls back below +100 &#x2014; capturing the bulk of a directional move. If CCI fails to make a higher high while price does, that divergence signals a potential pullback.<\/p>\n<h2 id=\"tuning-cci-for-different-time-frames\">Tuning CCI for different time frames<\/h2>\n<table>\n<tr>\n<th>Time frame<\/th>\n<th>Suggested period<\/th>\n<\/tr>\n<tr>\n<td>5-minute intraday<\/td>\n<td>10&#x2013;14<\/td>\n<\/tr>\n<tr>\n<td>15-minute \/ 1-hour<\/td>\n<td>14&#x2013;20<\/td>\n<\/tr>\n<tr>\n<td>Daily (default)<\/td>\n<td>20<\/td>\n<\/tr>\n<tr>\n<td>Weekly positional<\/td>\n<td>30&#x2013;50<\/td>\n<\/tr>\n<\/table>\n<h2 id=\"caveats\">Caveats<\/h2>\n<ul>\n<li>CCI can stay above +100 (or below &#x2212;100) for long stretches in strong trends.<\/li>\n<li>Lambert&#x2019;s original guidance was to trade in the direction of CCI extremes, not against them.<\/li>\n<li>Combine with ADX or <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/moving-averages\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">moving averages<\/a> to filter range-bound noise.<\/li>\n<li>Beware single-bar spikes during news; wait for confirmation candles.<\/li>\n<\/ul>\n<h2 id=\"frequently-asked-questions\">Frequently asked questions<\/h2>\n<div>\n<h3 id=\"is-cci-only-for-commodities\">Is CCI only for commodities?<\/h3>\n<p>No. It works on stocks, indices, ETFs and crypto. The name reflects its origin, not its current usage.<\/p>\n<h3 id=\"how-is-cci-different-from-rsi\">How is CCI different from <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/rsi\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>RSI<\/a>?<\/h3>\n<p>Both measure momentum, but CCI compares price to its mean using mean deviation, while RSI uses average up vs down moves. CCI can range beyond &#x2212;100\/+100; RSI is bounded 0&#x2013;100.<\/p>\n<h3 id=\"can-i-use-cci-on-lemonn-charts\">Can I use CCI on Lemonn charts?<\/h3>\n<p>Yes. Any standard charting platform with technical indicators supports CCI.<\/p>\n<h3 id=\"what-about-long-term-investing\">What about long-term investing?<\/h3>\n<p>CCI on weekly charts can flag major regime shifts in indices. Most investors prefer it as a secondary indicator rather than primary entry tool.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Commodity Channel Index, or CCI, was developed by Donald Lambert in 1980 to identify cyclical turns in commodity prices. Despite the name, traders use CCI today on stocks, indices and forex. It measures how far the current price is from its statistical mean over a chosen period and is excellent for catching the start [&#x2026;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-12184","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"The Commodity Channel Index, or CCI, was developed by Donald Lambert in 1980 to identify cyclical turns in commodity prices. Despite the name, traders use CCI today on stocks, indices and forex. It measures how far the current price is from its statistical mean over a chosen period and is excellent for catching the start&hellip;","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12184","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12184\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}