The Commodity Channel Index (CCI) was designed by Donald Lambert to identify cyclical turns in commodities. The assumption behind the indicator is that commodities move in cycles, with highs and lows coming at periodic intervals. Lambert recommended using 1/3 of a complete cycle as a time frame for the CCI. If the cycle runs 60 days (a low about every 60 days), then a 20-day … [Read more...]
Commodity Channel Index : The Concept
Originally developed by Donald Lambert, The Commodity Channel Index (CCI) is an oscillator which has also been featured in his book "Commodities Channel Index: Tools for Trading Cyclical Trends". The indicator, since its introduction, has grown in popularity and is now a very common tool for traders to identify cyclical trends not only in commodities but also equities and … [Read more...]