✓ Mathematical
◆ The PatternCCI = (Typical Price − SMA) / (0.
The Commodity Channel Index — created by Donald Lambert (1980).
CCI = (Typical Price − SMA(TP)) / (0.015 × Mean Deviation)
The 0.015 constant scales the indicator so that ~75% of values fall between −100 and +100.
Interpretation:
• CCI > +100 → unusually strong (possible overbought)
• CCI < −100 → unusually weak (possible oversold)
• Zero-line crossovers indicate trend direction changes
• CCI > +100 → unusually strong (possible overbought)
• CCI < −100 → unusually weak (possible oversold)
• Zero-line crossovers indicate trend direction changes
Pattern bridge: CCI measures deviation from the mean in units of mean absolute deviation — a z-score variant. In ML, batch normalization does the same: center and scale.