CCI — Commodity Channel Index Explained
7/6/2026
indicators
technical
guide
CCI measures how far price is from its statistical average: beyond plus/minus 100 = stretched territory.
Level by level
Beginner
Same family as RSI/stochastic: an overbought/oversold oscillator — with an unbounded scale, so extremes can extend further than you expect.
Intermediate
Lambert's original use was cyclical: +100 crosses as trend ENTRY (strength) rather than a fade — opposite to how beginners use it.
Advanced
The dual personality is the lesson: breakout tool in trends, fade tool in ranges. Decide which game the market is playing first (ADX helps).
Common mistakes
- Fading +100 in a fresh breakout (that's often the ENTRY)
- Ignoring that CCI has no fixed bounds
Practise & tools
_Educational content only — not financial advice. Historical behaviour never guarantees future results._
Keep learning — free tools