CCI index, also known as homeopathic index or commodity path index, is called "commodity channel index" in English. It was created by Donald Lambert, an American stock market analyst, and it is a stock market analysis tool focusing on judging the deviation degree of commodity prices. It assumes that the price of commodities (stocks or futures) runs according to the periodic law, and the price level appears periodically.

Principle;

CCI index was put forward by Donald Lambert in 1980s, which is a relatively novel technical index. It was first used to judge the futures market, and later used to judge the stock market, and was widely used. Different from most technical analysis indexes invented only by using the closing price, opening price, highest price or lowest price of a stock, CCI index is a unique technical analysis index, which introduces the concept of the average interval deviation between the price and the stock price in a fixed period according to the statistical principle, and emphasizes the importance of the average absolute deviation of the stock price in the technical analysis of the stock market.

CCI index is an overbought and oversold index, which measures whether the stock price is beyond the normal distribution range, but it is unique from other overbought and oversold indexes. Most overbought and oversold indicators, such as KDJ, WR%, CCI, etc. There is an upper and lower bound of "0- 100", so it is more suitable for judging the general normal market, and for the price trend of stocks that have skyrocketed and plummeted in a short time, this indicator may be passivated. However, CCI index fluctuates between positive infinity and negative infinity, so there will be no passivation of the index, which will help investors to better judge the market, especially those abnormal markets with short-term ups and downs.