CCI (Commodity Channel Index) is a technical indicator that measures how far a stock's price has moved from its average price over a specific period. It shows whether a stock is overbought (too high) or oversold (too low) by comparing the current price to its historical average. The CCI scale usually ranges between -100 and +100, with values above +100 indicating overbought conditions and below -100 indicating oversold conditions. Traders use CCI to identify potential buy or sell opportunities when the price moves too far from the average. It’s a tool to spot price reversals or trend changes in the market.