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Commodity Channel Index (CCI)

What is CCI?​

Commodity Channel Index (CCI) is a momentum-based indicator created by Donald Lambert. Despite its name, it is used across all markets, including stocks, indices, crypto, and forex.

CCI measures how far the price has moved away from its statistical average, helping traders identify overbought, oversold, and trend reversal conditions.

Values above +100 typically indicate strong upward momentum, while values below –100 may suggest strong downward momentum.

How to Add CCI?​

  1. Click on the "+" button in the Indicators section.
  2. Select Commodity Channel Index (CCI).
  3. Choose the data source containing OHLC values.
  4. Configure the Length, Time Frame.
  5. Click "Add" to save the indicator.

Configurable Parameters in CCI​

1. On Data (Source Selection)​

  • CCI requires High, Low, and Close values to calculate the Typical Price.
  • If multiple OHLC sources exist, choose the correct one.
  • If not selected, CCI uses the main Candle Data by default.

2. Time Frame​

  • Defines the timeframe used to calculate CCI.
  • Example: Setting 15 calculates CCI using 15-minute candles.

3. Length​

  • Defines the number of periods used in the CCI calculation.
  • The common default is 20 periods.

When Length is Set Very Low (e.g., 2)​

In universal, simple terms:

  • A smaller length makes CCI react very quickly.
  • It measures the price deviation using only the last few candles.
  • With a length of 2, CCI is essentially asking: “How far has price moved from its tiny recent average?”
  • This results in very fast but unstable signals, often flipping between overbought and oversold zones.

In short: short length = hypersensitive, noisy, rapid swings.

Applying CCI on Other Candle Types​

CCI can be calculated on any candle series that provides High, Low, and Close values.

Example

Apply CCI to Heikin-Ashi candles or custom OHLC datasets to understand momentum in non-standard chart types.

Element Name​

Each CCI indicator receives a unique Element Name, allowing easy reference inside strategy conditions and actions.

Use Cases for CCI​

  • Overbought/Oversold Identification
    → Values above +100 indicate possible overbought zones; below –100 indicate oversold zones.

  • Trend Confirmation
    → Persistent CCI above zero often signals an uptrend, below zero a downtrend.

  • Momentum Reversals
    → Sharp moves across the zero line can signal changing momentum.

  • Pattern-Based Entries
    → Traders combine CCI crossings with price action or other indicators.

Next Steps​

✅ Add CCI to your strategy
✅ Use CCI for momentum and mean-reversion setups
✅ Combine CCI with EMA, Bollinger Bands, or RSI
✅ Use CCI signals in Conditions & Actions