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Lesson 14 of 21 · 4 min read

CCI: how far from normal

The Commodity Channel Index measures how far the price is from its average – in multiples of the usual deviation. How it is computed, why it has a period of 9 on Binance and 20 elsewhere, and what the ±100 levels mean.

On this page

In this lesson

  • compute CCI from the typical price, its average and the mean deviation
  • find out why Binance's Original mode has CCI 9 while elsewhere it is CCI 20
  • understand why CCI has no upper or lower limit

Stretch a rubber band from the average price. The further the price moves from the average, the more the band stretches – and that is exactly what CCI measures. Unlike RSI it has no ceiling: the band stretches to +300 just as well as to +100. Professor Wick advises not to stand right in front of it.

average+180How far from normal?
CCI measures how far the price is from its average – in multiples of the usual deviation.

How it is computed#

  1. The typical price of each candle = (high + low + close) / 3.
  2. Compute its average over the last N candles.
  3. Compute the mean deviation: how much the typical price differs from that average on average (ignoring the sign).
  4. CCI = (typical price − average) / (0.015 × mean deviation).

Its author Donald Lambert chose the 0.015 constant so that roughly 70–80% of values fall between −100 and +100. That holds for "well-behaved" markets. Bitcoin is not well behaved: in 2023–2024 only about 56% of CCI 20 values fell within ±100.

Where to find it on Binance#

In Original mode: the indicator icon, the Sub Indicator tab, tick CCI, Save. The legend shows CCI(9) – in this mode Binance's default period is 9. In Trading View mode and in most textbooks CCI 20 is used; the course charts draw the same.

Video (20 s): switching on CCI on Binance – Sub Indicator, CCI, Save; legend CCI(9) (Binance, 9 Oct 2026).

9 or 20?#

The slider starts at a period of 9 as on Binance. Move it to 20 and compare how often the line breaks through ±100:

9
5 · common default: 20 · 50

The line entered the overbought or oversold zone 67×. A shorter period: the line reacts faster and gives more signals – false ones included.

Data: Binance Vision · CC BY-NC-SA 4.0
  • CCI 20 (panel below the chart, lines at +100 and −100)
CCI 20 below the chart. Above +100 the price is unusually far above its average, below −100 unusually far below. It has no ceiling and no floor.BTC/USDT · 1D · Data: Binance Vision · CC BY-NC-SA 4.0

How to read CCI#

  • Above +100: the price has moved unusually far above the average. In a strong rise CCI can stay there a long time.
  • Below −100: the same downwards.
  • Within ±100: the price stays in its usual band around the average.

Lambert invented CCI for commodities with cycles – hence "Commodity" in the name. On crypto it works like any oscillator: it describes how stretched a move is, not where it goes.

No ceiling, no certainty

CCI +200 does not mean "now it has to fall". Strong trends stretch the band further than you would expect. Trading just because CCI is "too high" is a bet against the trend.

Common myths#

  • "CCI runs from 0 to 100 like RSI." It has no limits; ±100 are only guide lines.
  • "CCI 9 and CCI 20 show the same thing." The shorter period swings more and breaks ±100 more often.
  • "It is an indicator for commodities, it does not work on crypto." It works just as well – and just as limitedly – as other oscillators.

Summary

  • CCI = (typical price − its average) / (0.015 × mean deviation).
  • ±100 are guide lines; beyond them the price is unusually far from its average.
  • Binance (Original) defaults to CCI 9; CCI 20 is common elsewhere.
  • CCI has no upper or lower limit.