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