RSI vs CCI: what each one measures, and why the scales differ
RSI and CCI both swing above and below a middle line. But RSI lives in a box from 0 to 100, and CCI can run as far as price lets it.
The short answer
The RSI (Relative Strength Index) compares the size of recent up moves to recent down moves. It always stays between 0 and 100.
The CCI (Commodity Channel Index) compares today's typical price to its recent average. Then it divides by how far price usually strays from that average. It has no fixed top or bottom.
In plain words: RSI asks "how strong were the gains versus the losses?" CCI asks "how far is price from normal right now?"
Side by side
| RSI | CCI | |
|---|---|---|
| What it measures | Size of up moves vs down moves | Distance of price from its average |
| Price it uses | Closes | Typical price: (high + low + close) ÷ 3 |
| Scale | Fixed, 0 to 100 | Open-ended, centred on 0 |
| Common lines | 70 and 30 | +100 and −100 |
| Usual setting | 14 bars | 20 bars in many apps (14 also common) |
| Created by | J. Welles Wilder, 1978 | Donald Lambert, 1980 |
| Feel | Smoother | Jumpier, bigger swings |
How CCI works, in plain words
CCI takes the typical price of each candle: the high, low and close added up and divided by 3.
Then it does three things:
- Finds the average typical price over the last 20 bars.
- Measures how far, on average, each bar strayed from that average.
- Asks how far today sits from the average, compared with that usual stray.
Lambert built in a scaling number (0.015) so most readings land between +100 and −100. A reading of +200 means price is far above normal. That's a description, not a forecast.
RSI: strengths and limits
The good parts:
- Fenced in. 0 to 100 is easy to read on any chart and any market.
- Calmer. It gives fewer, smoother signals.
- Good for trend health. In an uptrend, RSI holding above 50 can confirm strength. See RSI explained.
The limits:
- Squashed at the edges. Near 100 or 0, big moves barely change the number. A very strong push and a strong push can look the same.
- Stays stretched in trends. "Overbought" can last a long time.
CCI: strengths and limits
The good parts:
- Shows size. Because it isn't capped, a huge move shows up as a huge number. You can see how unusual a move is.
- Uses the whole candle. Highs and lows count, not just closes.
- Quick. It turns early when price swings inside a range.
The limits:
- No fixed "too far". +100 is common. +300 can happen. There's no line where it must turn.
- Noisy. More signals, more false ones.
- Hard to compare. A reading on one market doesn't mean the same on another.
Both are built from price. Neither knows where the real levels are. Mark the last places price turned around first, then read the line as a second opinion. See support and resistance.
A simple example
Say price has hovered near 100 for weeks, straying about 1 point from its average. Then it jumps to 104.
- CCI sees price 4 points from normal when normal stray is 1. The reading shoots well past +100.
- RSI sees a few strong up candles. It climbs, maybe into the 70s.
Both say "strong lately". CCI makes the size of the surprise louder. That's useful for spotting unusual moves, and it's also why CCI gives more false alarms.
Which fits you?
- Do you want a calm, fixed scale that reads the same on any market? RSI tends to fit better.
- Do you want to see how unusual a move is, in size? CCI tends to fit better.
- Is price trending or ranging? In a trend, watch whether either line holds above or below its middle (50 for RSI, 0 for CCI). In a range, the edges (70/30 or ±100) can line up with the range limits. See range trading explained.
You don't need both. They answer similar questions.
Common mistakes
- Treating +100 or 70 as a sell signal. Both only say price has been strong. Strong can stay strong.
- Expecting CCI to stop at ±100. It often doesn't. There is no ceiling.
- Chasing divergence alone. When price makes a new high and the line doesn't, momentum is fading. It can fade for a long time. See divergence explained.
- Letting the line set the stop. Your stop goes past a chart level. The position size calculator sets size from it.
Questions
What is the difference between RSI and CCI?
RSI compares recent gains to recent losses and stays between 0 and 100. CCI compares price to its recent average, scaled by how far price usually strays, and has no fixed limits. CCI is usually jumpier.
What do +100 and -100 mean on CCI?
They mark where price is unusually far above or below its recent average. Most readings fall between them. A reading past them describes a strong move; it doesn't promise a turn.
Is CCI only for commodities?
No. Donald Lambert designed it for commodities in 1980, but it works the same way on stocks, forex, crypto and futures charts.
Should I use RSI and CCI together?
You can, but they often agree because both come from price. Many traders pick one and pair it with clear levels and the trend.
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