developed by Welles Wilder and is presented in his book New Concepts in
Technical Trading Systems. The name of the index reflects its primary purpose.
That is, to help select suitable for short-term trading.
A high CSI rating indicates that the commodity has strong trending and
characteristics. The trending characteristics are brought out by the Directional
Movement factor in the calculation--the characteristic by the Average
True Range factor.
Wilder's approach is to trade with high CSI values (relative to other
). Because these are highly volatile, they have the potential
to make the "most money in the shortest period of time." High CSI values imply
trending characteristics which make it easier to trade the security.
The Commodity Selection Index is designed for short-term traders who can handle
the risks associated with highly volatile markets.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.