CCI and RSI parameter defaults as scaling conventions

What the two oscillators compare

The commodity channel index is an oscillator that compares price to a moving typical price and scales the gap with mean deviation. The relative strength index is an oscillator that compares average upward closes with average downward closes over a chosen lookback. Lookback means the number of sampling intervals used to compute an oscillator reading.

The conventional CCI scaling-constant

An 11-period commodity channel index is described with a denominator equal to the current mean deviation multiplied by 0.015. Mean deviation is the average absolute distance of recent typical prices from their mean, used in the CCI denominator.

The 0.015 factor is identified as the conventional constant used when calculating CCI. It is a scaling-constant, a fixed multiplier applied so oscillator readings land in a conventional numeric range. That constant is used for scaling so that about 70-80% of CCI fluctuations fall between +100 and -100.

The evidence gives 0.015 a scaling role rather than a freshly derived proof that no other CCI constant could be substituted.

The stated RSI default-period

The default period stated for calculating RSI is 14. A default-period is a widely reused starting lookback that is not, by itself, proof that nearby periods are inferior. A 13-period or 15-period RSI is not ruled out. Other lookbacks remain open to experiment.

Editorial: change one lookback at a time

This paragraph is TradersWeek editorial interpretation and is not archive instruction. The 0.015 CCI factor and the 14-period RSI default are inherited comparability choices. They keep a published reading inside a familiar numeric band, or they give a widely reused starting lookback. If only the lookback is changed, the same band needs a fresh check before it is treated as still carrying the same meaning. The archive does not prove that a substitute CCI constant or a nearby RSI period is inferior.