Commodities analyst who created the CCI
Donald R. Lambert
Donald R. Lambert was a commodities analyst who introduced the Commodity Channel Index (CCI) in Commodities magazine (now Modern Trader) in 1980; the article was later reprinted in Technical Analysis of Stocks & Commodities. He designed the CCI as a timing tool for cyclical and seasonal commodity markets, scaled like a statistical standard score. Little further biographical information is publicly documented.
What they argue
- Commodity prices move in cycles, and a standardised index comparing price to its moving average can time when those cyclical moves begin and end.
- The CCI's lookback should be less than one-third of the market's cycle length.
- A move above +100 signals the start of an uptrend and a reason to buy; the position should be closed when the CCI falls back below +100.
Sources
Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.
Lambert's CCI breakout
Rule and full recordMomentum · daily
The Commodity Channel Index measures how far price has run from its average. Lambert bought above +100 and sold when it fell back.
Best risk-adjusted results against buy and hold: