Glossary · Pro tools

Commodity Channel Index

How far the price is from its 20-day average, scaled by how far it usually strays.

Why it matters

Readings above 100 or below −100 mean an unusually large move away from the average. Despite the name it works on stocks too.

How to read it

A move above 100 can start a strong trend; a fall back below 100 after a spike is read as fading momentum.

Also called: CCI

Related

Bollinger BandsA band two standard deviations above and below the 20-day average price.RSI (Relative Strength Index)A 0 to 100 gauge of how hard a stock has been bought or sold over the last 14 days.

In the Cluenex app, this explanation opens next to every commodity channel index figure, with the live reading for the stock you are looking at. Open it in Cluenex