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Stocks & Commodities V. 22:10 (61): Sidebar: Four steps to calculate Lambert’s commodity channel index
Formulas are provided for the following four steps that calculate Lambert's commodity channel index.
1. Compute today’s “typical” price, using high, low,
and close:
2. Compute a moving average of the N most recent
typical prices:
3. Compute the mean deviation of the N most
recent typical prices:
4. Compute the commodity channel index:
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