Commodity Channel Index

Overview

Commodity Channel Index is used to give a measurement of how far a security is from its statistical mean. High values mean that the current price is higher than the mean.

Calculation

The calculation is done in the following steps:

1. For each bar - average the High, Low, and Close.

2. Calculate a moving average of these values.

3. For each bar in the calculation, subtract the final bars average (step 2) value from the HLC average calculated in step 1.

4. Calculate a moving average of the values in step 3.

5. Multiply the value by 0.015.

6. Subtract the value given from Step 2 from the value in step 1.

7. Divide the value in Step 6 by the value in Step 5.

To add the tool to your chart, select the tool from the Price tool group, and left-click on the chart to add the tool. Optuma will then draw the tool in a window below the chart using the default settings.

Actions & Properties

Actions

Copy Data to Clipboard: Will copy the tool’s values to the clipboard which can then be inserted into a spreadsheet, for example, allowing for further analysis.

Add to Toolbar: Adds the selected tool to your custom toolbar.

Apply Settings to All: When multiple Commodity Channel Index tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as line colour - as this allows all the other Commodity Channel Index tools in the chart, page or entire workbook to be updated instantly.

Copy Tool: Allows you to copy the selected tool, which can then be pasted onto a different chart window.

Move to Back: If the tool is displaying in front of other tools or indicators clicking this action will move the tool view to the background.

Move to Front: If the tool is displaying behind other tools or indicators on the chart, clicking this action will bring the tool to the forefront.

Restore Default Settings: Click this action if you have adjusted the default settings of the tool, and wish to return to the standard properties originally installed with Optuma.

Save Settings as Default: If you have adjusted any of the tool’s properties (colour, for example) you can save the adjustments as your new default setting. Each time you apply a new Commodity Channel Index to a chart, the tool will display using the new settings.

Delete: Deletes the tool from the chart.

Properties

Tool Name: Allows you to adjust the name of the tool, as it’s displayed in the Structure Panel.

Bars: Allows you to increase or decrease the number of bars that are used in the calculation.

Buy Level: Sets the value of the lower horizontal level.

Sell Level: Sets the value of the upper horizontal level.

Plot Style: Allows you to change how the tool is displayed on your chart. There are 6 options available: Line, Dot, Histogram, Step, Shaded, Shaded Step.

Buy Level Style: This option expands to show the following:

• Plot Style - Allows you to change how the Buy Level line is displayed on your chart. There are 6 options available: Line, Dot, Histogram, Step, Shaded, Shaded Step.
• Line Style - The Line Style property allows you to adjust the type of line displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled.
• Line Width - Allows you to adjust the width of the Buy Level line. Moving the slider bar to the right increases the thickness of the line.
• Line Colour - Allows you to select the colour of the Buy Level line. Clicking on the drop down arrow will display a colour swatch. Locate the desired colour and left-click it once to select it.

Sell Level Style: This option expands to show the properties of the Sell Level Line. The properties are identical to those listed for the Buy Level Style.

Offset: This provides the option to offset the Commodity Channel Index from the chart, to adjust the offset value use the blue up and down arrows.

Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.

Visible: Un-tick this checkbox to hide the tool from the chart.

Show In Price Scale: When selected the current Commodity Channel Index value will be displayed in the Price Scale.