Commodity Channel Index (CCI)

The CCI indicator supplied with NinjaTrader cannot be used with an input series other than price. We have recoded it so that you may apply it to other indicators. To do so, simply select any of the other NinjaTrader indicators as input series.

Indicator Description

The Commodity Channel Index (CCI) was developed by Donald Lambert and is designed to identify cyclical turns in the commodities markets. The idea is that commodities move in cycles, i.e. intervals of high-to-high or low-to-low.

Lambert recommends using a calculation period of 1/3 of the cycle. If a commodity cycle is 60 days, the calculation period is 20 days. Setups are then produced when the indicator approach the +100 or -100 regions.

If the CCI moves above +100, it signals that a new uptrend is beginning. Once the CCI falls below +100, the position should then be closed. If the values moves below -100, a new downtrend is beginning. If they rise above -100, the position should be closed. Of course, other technical indicators should be used to confirm.

Also, if new highs or lows are made that diverge from the Commodity Channel Index, it could signal a price reversal. Such divergences often signal strong buy or sell signals.

The indicator is available for NinjaTrader 8.