Basics Of, Value: Commodity
A futures agreement seller acquires commitment to sell the commodity within the outstanding time limits.
Originally crafted for use in commodity trading, the index has received popularity in both stock and Forex commerce. The DCCI is targeted to measure standard deviations in rate from its statistical average, and it is calculated employing market price including a transporting average of rate. The DCCI consists of two lines: a smoothed commodity channel index line as well as an unsmoothed commodity channel indicator line. As the commodity channel indication that it is descended from, readings of the DCCI via 100 are taken as indicating overbought conditions, while readings under - 100 show oversold conditions.