An indicator that shows how many times its usual swing the price has moved away from its recent average.
- Weapon tier
- Standard
- Slots used
- Sub-charts 1/2
- Created by
- Donald Lambert · 1980
Concept
CCI measures how far the typical price (the average of high, low and close) is from its average over the last 20 candles, divided by the usual swing in that period. Near the average it sits around 0; well above the usual swing it goes over +100, and well below it drops under −100.
The panel shows a single cci line with dotted lines at −100 and 100. There is no fixed top or bottom, so it can reach ±200 or ±300.
- CCI
Charts by TradingView Lightweight Charts™
80 candles with volume and the cci line in the panel. From candle 38 to candle 59 (shaded), the price falls and cci stays below −100; at candle 60 (arrow) cci climbs back above −100. The price then recovers. Keyboard: ←/→ to move, +/− to zoom, 0 to see the whole chart.
During the shaded stretch cci was below −100 and the price kept falling. If you had bought because “it is below −100”, you would have had to sit through that drop. This chart was chosen as a scene where the price rose after cci came back; falling again afterwards is common too. Drag the chart sideways with a finger or the mouse to move it, and pinch with two fingers to zoom in. With a keyboard, click the chart, then use ←/→ to move and +/− to zoom.
How it is calculated
For each candle, take the typical price = (high + low + close) ÷ 3.
Over the last 20 candles, find the average typical price and the average distance (ignoring sign) of each candle from that average (the mean absolute deviation).
CCI = (current typical price − average) ÷ (0.015 × mean absolute deviation). The 0.015 is a constant chosen so that values mostly fall between −100 and 100.
Parameters
| What it sets | Name in the game | Default | Range |
|---|---|---|---|
| Candles used for the average and the swing | period | 20 | 2 – 100 |
Trading ideas
Climbing back above −100: when cci drops below −100 and then comes back above it, it is commonly read as leaving an overly fallen state. The chart on this page shows that scene. Dropping back below +100 is the opposite.
Crossing 0: when cci rises above 0, some read it as the price moving above its recent average.
Common traps
- In a strong trend cci stays above +100 or below −100 for a long time. Trading the other way just because it is outside the band fights the trend.
- A single big candle makes the value jump. The line swings roughly, so do not decide on one candle.
- The chart on this page was chosen as a scene where the price rose after the signal. Read it together with the trend (lesson 2) and volume.
In the game
- “CCI” is a “Standard” weapon and uses 1 of the “Sub-charts” panels (limit 2). Volume in the starting setup already uses 1, so adding CCI brings it to 2 (0 left).
- The panel shows the cci line and dotted lines at −100 and 100.
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