The Commodity Channel Index (CCI) is a technical indicator that measures the current price level relative to an average price level over a given period of time. The CCI was developed by Donald Lambert and is published in his book, "The Technical Trader's Bible." The CCI can be used to identify overbought and oversold conditions in the market.When the CCI moves above 100, it indicates that prices are higher than average and may be due for a pullback. When the CCI moves below -100, it indicates that prices are lower than average and may be due for a rally. The CCI can also be used to spot divergences between prices and indicators such as moving averages or MACD histograms.Most traders use the default settings of 14 periods for smoothing with highs set at +100/-100 but these settings can be adjusted to fit each trader's own trading style. Overall, the Commodity Channel Index is a versatile tool that can help traders identify opportunities in both up-trending and down-trending markets.