Commodity Channel Index (General) [CCIGeneral]

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The Commodity Channel Index (General) function calculates the variation of the price of a financial data series from its average over a given period of time for any price data. Contrary to the name, the Commodity Channel Index can be used for any financial data series. Parameters ------------------ Price         The price to use for evaluating the security for each given day.                  The classic Commodity Channel Index uses an average of the high, low, and closing prices. Period       The number of bars of data to include in the calculation, including the current value.                  For example, a period of 3 includes the current value and the two previous values. Indicator Value ------------------------ The Commodity Channel Index (CCI) determines how far from the price has been from the recent average. High values indicate multiple days with higher than average prices. Low values indicate multiple days with lower than average prices. The CCI at the beginning of a data series is not defined until there are enough values to fill the given period. Usage ----------- The Commodity Channel Index (CCI) can be used for detecting divergences from the price trend and as an overbought/oversold indicator. When watching the CCI in relation to the current price, it is useful to watch for new highs and lows. If the price of the security is reaching new highs and the CCI is not reaching new highs, a price correction may be upcoming. The CCI typically ranges in value from -100 to +100. Values above this range indicate that the security may be becoming overbought, values below this range indicate it may be becoming oversold. As with other overbought/oversold indicators, this can often mean that the price will correct to more typical levels. Source ------------ This indicator is based on an entry in "Technical Analysis From A To Z" by Steven B. Achelis. It was originally developed by Donald Lambert.