DEFINITION of 'DUAL Commodity Channel Index - DCCI'

A method used in technical analysis to identify when an asset or market is overbought or oversold. DCCI is employed by graphing a smoothed Commodity Channel Index (CCI) line along with an unsmoothed one. Crossovers of the two lines indicate possible buy and sell signals, while subsequent breaks in the price trendline are then seen as definite entry and exit points.

BREAKING DOWN 'DUAL Commodity Channel Index - DCCI'

The CCI was introduced by Donald Lambert in 1980, and has grown in popularity within the technical analysis community as a signal for peaks and troughs in asset prices. The DCCI is a derivation of the CCI and adds another level of analysis to this complex trading tool.

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RELATED FAQS
  1. What is a common strategy traders implement when using the Dual Commodity Channel ...

    See how traders and analysts use the DUAL Commodity Channel Index to spot divergences, breakouts and instances when the security ... Read Answer >>
  2. What is the Dual Commodity Channel Index (DCCI) formula and how is it calculated?

    Learn how to calculate Doug Lambert's commodity channel index (CCI) along with its derivative indicator, the dual commodity ... Read Answer >>
  3. Why is the Dual Commodity Channel Index (DCCI) important for traders and analysts?

    Find out how traders and analysts use the dual commodity channel index (DCCI), the derivation of a technical cycle indicator ... Read Answer >>
  4. What are the best technical indicators to complement the Dual Commodity Channel Index ...

    Understand the dual commodity channel index and how it is used by traders and analysts in conjunction with other technical ... Read Answer >>
  5. How do I use The Dual Commodity Channel Index (DCCI) for creating a forex trading ...

    Use an alternative interpretation of the dual commodity channel index (DCCI) to create a unique breakout trading strategy ... Read Answer >>
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    Learn more about the commodity channel index, a technical momentum oscillator that traders can use to track overbought and ... Read Answer >>
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