Commodity Channel Index (CCI): formula and how to read it

How far the typical price has strayed from its 20-day average. The typical price (high plus low plus close, divided by 3) minus its 20-day average, divided by 0.015 times the average distance of the last 20 typical prices from that average. Readings above +100 or below -100 are unusually far from the average.

Stock Meadow groups it under Price trend, and shows it in tables as CCI 20.

CCI = (typical price − 20-day average of typical price) ÷ (0.015 × mean absolute deviation); typical price = (high + low + close) ÷ 3

A typical price of $52 against a 20-day average of $50, with a mean absolute deviation of $1, gives CCI = 2 ÷ (0.015 × 1) ≈ +133. The numbers are made up for illustration.

The scale is open-ended but most readings fall between −100 and +100. Above +100 the price is unusually far above its average, below −100 unusually far below. It is a filter only, because neither end is better.

It can be used as a filter and as a column, but not for scoring: it describes a company rather than making it better or worse.

• The 0.015 constant is a convention, so compare readings with each other rather than reading 100 as a hard limit.
• A strong trend can keep the reading above +100 for weeks.
• Blank when the typical price did not vary over the 20 days.

How Stock Meadow handles gaps. Usually blank when there are fewer than 20 days of prices, or the price did not move at all.

Treat any single metric as one clue, and read the company's financial statements before drawing a conclusion. Stock Meadow's figures are research tools based on reported data, not investment advice.

No scoring model uses it. It is a filter and a table column only.

Read about every scoring model in How scores work.

• Relative Strength Index (RSI): recent buying momentum; 50–70 is healthy.
• Bollinger %B: where the price sits between its Bollinger bands: 0% is the lower band, 100% the upper.
• Stochastic Oscillator (%K): where the close sits in the last 14 days' range, from 0 to 100.

What does a CCI above 100 mean?

It means the typical price is unusually far above its 20-day average. Traders read it as a strong up-move or as a stretched price; it does not say what happens next.

Can I score stocks on CCI 20?

It can be used as a filter and as a column, but not for scoring: it describes a company rather than making it better or worse.

Why is CCI 20 blank for some stocks?

It is usually blank when there are fewer than 20 days of prices, or the price did not move at all. Stock Meadow leaves the figure blank rather than guessing it.