Commodity channel index
Commodity channel index (CCI) measures how far typical price is from its moving average, scaled by mean absolute deviation and a constant. Despite its name, it can be applied to different markets. High or low readings show relative price extremes, not certain reversals.
In a hypothetical chart, CCI reaches +150 during a sustained rally. This shows price is relatively far above its recent average, but the rally could continue.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure