What is the process for calculating the CCI (Commodity Channel Index) for digital currencies?

1 answers

• Mar 15, 2022 · 3 years ago
  As an expert in digital currencies, I can tell you that calculating the Commodity Channel Index (CCI) for digital currencies is a crucial step in technical analysis. The process involves several steps. First, you need to select a time period, such as 20 days. Then, calculate the typical price, which is the average of the high, low, and closing prices for each day. Next, calculate the simple moving average (SMA) of the typical prices over the selected time period. After that, calculate the mean deviation by subtracting the SMA from each typical price and taking the absolute value. Then, calculate the mean deviation average (MDA) by summing up the mean deviations over the selected time period and dividing it by the same period. Finally, calculate the CCI by dividing the mean deviation by the mean deviation average and multiplying the result by a constant factor. The resulting CCI values can provide valuable insights into the price movements of digital currencies and help traders make informed decisions.
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