The Commodity Channel Index (CCI) is a momentum-based oscillator that measures the deviation of a commodity's price from its historical average. Developed by Donald Lambert, the CCI is primarily used to identify potential overbought or oversold conditions in a market, with values above +100 indicating overbought conditions and values below -100 suggesting oversold conditions. Traders often use CCI in conjunction with other technical indicators to confirm trends and improve trading decisions. It can be applied across various time frames and asset classes, including stocks, commodities, and currencies.