The Commodity Channel Index (CCI), developed by Donald Lambert in 1980, compares the current mean price
with the average mean price over a period of time. Approximately 70 to 80 percent of CCI values are
between −100 and +100, which makes it an oscillator. Values above +100 imply an overbought condition,
while values below −100 imply an oversold condition.
According to
Investopia.com, traders often buy when the CCI dips below -100 and then rallies back above -100 to sell the security
when it moves above +100 and then drops back below +100.
Commodity Channel Index (CCI) Type: Momentum
The Commodity Channel Index (CCI), developed by Donald Lambert in 1980, compares the current mean price with the average mean price over a period of time. Approximately 70 to 80 percent of CCI values are between −100 and +100, which makes it an oscillator. Values above +100 imply an overbought condition, while values below −100 imply an oversold condition.
According to Investopia.com, traders often buy when the CCI dips below -100 and then rallies back above -100 to sell the security when it moves above +100 and then drops back below +100.
See
https://en.wikipedia.org/wiki/Commodity_channel_index