What is CCI (Commodity Channel Index)?
CCI compares price to average price over period — typically +100/−100 bands.
Formula
Above +100 = overbought; Below -100 = oversold
Indian market context (NSE)
Reference levels: Nifty 50 at 24,300, Reliance Industries at ₹1,300, Bank Nifty futures at 55,000 (lot size 30). Examples below show how CCI (Commodity Channel Index) shows up on Indian index, equity, and futures books — update to live quotes in your journal.
Nifty 50 perspective
CCI on Nifty (24,300): on the 15-minute chart, combine with session VWAP and 9:15–10:00 liquidity — index cci signals misfire on expiry Tuesdays without volume confirmation.
Reliance Industries perspective
CCI on Reliance at ₹1,300: daily vs hourly settings diverge around results and ex-dividend dates; note corporate events in journal when cci readings spike.
Bank Nifty futures perspective
CCI on Bank Nifty futures (55,000): first-hour signals differ from post-14:30 behaviour; avoid standalone entries when banking names lead the move.
How to validate
- Forward-test CCI (Commodity Channel Index) on paper or sim for two weeks after rule changes.
- Validate only on trades where CCI (Commodity Channel Index) settings matched the written playbook.
- Split results by trending vs range weeks on Nifty before trusting the signal.
- Require higher-timeframe bias agreement if that is part of your rule.
How to track in TradeLyser
- Add CCI (Commodity Channel Index) reading to trade entry notes (value + timeframe).
- Create tags: “CCI (Commodity Channel Index) aligned” / “CCI (Commodity Channel Index) ignored”.
- Monthly: filter trades by alignment tag and compare win rate and avg R.
- Screenshot chart context for mentor review on disputed trades.
Best practices
- Combine CCI (Commodity Channel Index) with higher-timeframe bias — not as a lone trigger.
- Avoid curve-fitting settings on less than three months of tagged data.
- Refresh playbook screenshots when changing CCI (Commodity Channel Index) parameters.
- Skip trading when CCI (Commodity Channel Index) conflicts with written risk limits.
Common pitfalls
- Treating CCI (Commodity Channel Index) as a guaranteed reversal signal.
- Optimising parameters on one bullish month only.
- Trading against higher-timeframe bias because CCI (Commodity Channel Index) “said so”.
- Failing to log when you overrode CCI (Commodity Channel Index) discretionally.
How to use this in TradeLyser
Log CCI period and value at entry on fade tags.
Related terms
Overbought describes price or oscillator extended above typical range — potential pause, not guaranteed top.
Oversold is extended below typical range on price or oscillator.
Relative Strength Index compares average gains to average losses over a lookback (commonly 14). Readings above 70 and below 30 are traditional extreme zones — not automatic reversal signals.
The stochastic oscillator measures where the close sits within the recent high-low range. %K and %D lines flag stretched moves in range-bound markets.
FAQ
CCI 20 default?
Tune per validated tag only.
CCI on commodities vs Nifty?
Works on both — stay consistent per symbol class.
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