Technical Indicator: Commodity Channel Index (CCI)
The Commodity Cannel Index (CCI) is a very popular indicator used mainly to show overbought and oversold areas. Developed by Donald Lambert mainly for commodities, it is not used on a wide variety of products. The CCI measures the current price relative to an average price, usually 20 prices. These have been created so that between +100 (overbought) and -100 (Oversold) they represent 75% of the price movement.
Often found on most spreadbetting charting packages as there is no volume involved. It is very easy to apply to your spreadbet charts.
