Day Traders Guide | Trading Sim

Commodity Selection Index (CSI) – Technical Analysis Indicator

Written by Al Hill | Jun 19, 2011

Commodity Selection Index (CSI) Definition

The Commodity Selection Index (CSI) is a momentum indicator that uses the ADXR component of the Directional Movement indicator to select commodities suitable for short-term trading.  The CSI was developed by Welles Wilder and was first published in the book New Concepts in Technical Trading Systems.  The higher the CSI, the greater the volatility and strength of trend.  Traders use the CSI is to find commodities with the highest volatility, because it has the greatest odds of quick gains.  The CSI is designed for short-term traders that have money management rules that account for the risks associated with highly volatile markets.

Commodity Selection Index Charting Example

 

Commodity Selection Index