What does Commodity Selection Index (CSI) mean?
A technical analysis tool to select commodities for short term trading. It indicates the strength of a trend on a commodity. The CSI identifies assets with high volatility and which are strongly trending.
Short term traders use CSI to select commodities with the high volatility and make money.
Futures Knowledge Explains Commodity Selection Index (CSI)
CSI is a Technical Analysis Indicator. It belongs to the category of momentum indicators. It is based on the ADXR component of the Directional Movement indicator. CSI determines the Volatility Index and Average True Range (ATR). CSI’s technical analysis indicates the strength of a trend on a commodity. The higher the CSI, the greater the volatility and strength of trend.
For example, if a CSI is high for a rising commodity, it is likely that rises will continue for the immediate future. It is useful technique for short term trading. Though risky, short term traders make profits in a very volatile market using Commodity Selection Index