As an indicator of momentum, the Commodity Selection Index(CSI) is designed to help select commodities suitable for short-term trading.
Designed for short-term traders who can handle the risks associated with highly volatile markets, a high CSI rating indicates that the commodity has strong trending and volatility characteristics. These characteristics are brought out by the Directional Movement factor in the calculation - the volatility characteristic by the Average True Range factor.
For details on the CSI, you can see Welles Wilder's book “New Concepts In Technical Trading Systems”.
Calculation:
ADXR = Average Directional Movement Rating indicator value
ATR = Average True Range indicator value
Inputs:
Period = 14
Indicates time period(the number of days for daily analysis, the number of weeks for weekly analysis, etc.).
Value = 100
Indicates value of a 1cent move.
Margin = 2500
Indicates margin requirement.
Commission = 25
Indicates transaction commission cost.
Indicator Type: Trend, Momentum