What is CCI (Commodity Channel Index)?
The Commodity Channel Index (CCI) is a momentum indicator developed by Donald Lambert in 1980. It was originally developed for the product (commodity) market, but is currently used in various markets such as coins and stocks.
CCI = (current price - N period average) / (0.015 × mean absolute deviation)
Default Duration: 20
It moves positive (+)/negative (-) around 0, and in particular, the +100/-100 level is the key reference point.
CCI Core Level
| level | meaning | Strategy |
|---|---|---|
| +200+ | Extremely overbought | 🔴 Strong short opportunity |
| +100~+200 | Overbought entry | 🔴 Short Boundary |
| 0~+100 | Normal bullish section | network |
| -100~0 | Normal bearish zone | network |
| -100~-200 | Oversold entry | 🟢 Long border |
| -200 or less | Extremely oversold | 🟢 Strong Long Opportunity |
CCI 3 key signals
Signal 1: Breaks ±100 (enters trend)
CCI breaks above +100: Enters a strong upward trend → Follows the long trend CCI breaks below -100: Enters a strong downtrend → Follows the short trend
In a strong trend, a CCI break of ±100 is a trend continuation signal (not a reversal).
Signal 2: Re-entry (inversion) at ±100
When CCI falls from above +100 to below +100: exit from overbought zone → short signal When CCI rises from below -100 to above -100: exit from oversold zone → long signal
Signal 3: Divergence
Same principle as RSI/MACD:
- Price new low + CCI low rise → Bullish divergence → Long
- Price new high + CCI high low → bearish divergence → short
CCI vs RSI vs Stochastic
| Compare | CCI | RSI | Stochastic |
|---|---|---|---|
| range | infinite (theory) | 0~100 | 0~100 |
| Trend Following | Strong | Normal | Weak |
| reversal signal | Normal | Strong | Strong |
| sideways movement | Weak | Normal | Strong |
CCI has strong trend-following characteristics, making it particularly useful in trending markets.
Futures Trading Strategy
Trend Following:
When CCI rises from below -100 to above +100 → go long
(Higher reliability with RSI 50+)
Inversion:
CCI is over +200 → Shooting star appears → Short entry
Related guides
- RSI auxiliary indicator →
- Stochastic indicator →
- MACD and CCI combination →
- Liquidation price calculator →