CCI

Overview of the Commodity Channel Index calculation.

The Commodity Channel Index​ (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold. This technical indicator measures the difference between the current price and the historical average. It assesses trend direction and strength, allowing traders to determine if they want to enter, exit, or avoid placing a trade.

The source code for the CCI function is available here.

/* Return CCI (Commodity Chanel Index) for n bars close price.
 *​
 * CCI = (Typical Price − MA) / 0.015 * Mean Deviation
 *
 * where:
 *     Typical Price = ∑P((H + L + C) / 3))
 *     P = number of bars (period)
 *     MA = Moving Average = (∑P Typical Price) / P
 *     Mean Deviation=(∑P | Typical Price - MA |) / P
 */