CCI Divergence

The Commodity Channel Index (“CCI”) is an oscillator originally pioneered by Donald Lambert in the 1980s. It is now commonly used to identify cyclical trends in many markets, including for commodities, currencies and equities.

The CCI is most often used in order to detect divergences from price trends, which can then provide investors with an indicator of whether an asset is overbought/oversold. It is a valuable tool for identifying peaks and troughs in an asset’s price.