Sidebar: Defining The Commodity Channel Index by D.W. Davies
Presented here are the ins and outs of the commodity channel index, as defined by creator Donald Lambert and modified by the author.
The commodity channel index (CCI) can be calculated using any lookback period chosen by the trader. The Excel spreadsheet shown here is an 11-period CCI for the Dow Jones Industrial Average. The first step is to calculate the daily typical price. This is the high, low and close added together and divided by three.