Commodity Channel Index (CCI) is translated as "Commodity Channel Index". This non-normalized oscillator was developed by stock trader Donald Lambert, who used CCI to trade the commodity markets. The Commodity Channel Index indicator helps to determine the current state of a financial instrument: overbought or oversold.
The CCI indicator evaluates the current relationship between the price and the simple Moving Average (MA). In other words, the indicator shows the deviation of the instrument's price from its average values. Maximum CCI values indicate that quotes have risen significantly and deviated upward from average prices, while minimum values indicate that quotes have already fallen quite strongly and deviated downward from average prices.