The Commodity Select Index measures commodity market strength and momentum, helping traders spot trend shifts, confirm signals, and time entries or exits more effectively.
In this guide to understanding the Commodity Select Index (CSI), we’ll show you what this chart looks like, explain its components, and teach you how to interpret it.
What Is the Commodity Select Index (CSI)?
The Commodity Select Index (CSI) was intended by Welles Wilder to be used to select the best commodity to trade by weighing the volatility and trending characteristics of each futures market.
What Does the CSI Look Like?
The chart below of the 100 oz. Gold Futures contract illustrates the Commodity Select Index:
What Are the Components of the CSI?
- Directional Movement
- Market Volatility
- Margin Requirements for the futures contract
- Commission Costs
The Commodity Select Index is usually calculated over 14-periods and includes the ADXR in its calculation.
What Does the CSI Indicate?
According to Wilder, the higher the Commodity Select Index the better the risk-reward setup.
Summary
The Commodity Select Index is yet another technical indicator created by Welles Wilder and chronicled in his popular book, New Concepts in Technical Trading Systems.
Regulated Brokers: Where Can I Trade Commodities?
FAQ
Below are some commonly asked questions about the CSI.
What is a momentum indicator?
A momentum indicator like the Commodity Select Index shows the difference between the price of an asset today and its previous price during a given timeframe. It can be helpful in identifying price uptrends or downtrends. If the momentum indicator is positive, that means an uptrend in the price is sustained, but if the indicator is negative, it means that the price is trending downward.
Further Reading on Momentum Indicators
These momentum tools complement Commodity Select Index: ADX Indicator, MACD Indicator, and Stochastic RSI.
Technical analysis is most widely used in CFD and forex trading. If you’re ready to apply these techniques, browse our vetted CFD brokers or forex brokers.
Update history
This page was revised 7 times between August 2020 and April 2026.
Added cross-promotion of CFD and forex brokers in Further Reading section with embedded broker comparison widget.
Removed outdated broker table and streamlined Further Reading section to focus specifically on momentum indicators complementing the Commodity Select Index.
Reformatted indicator list from inline to properly separated list items and updated broker comparison table identifier.
Added three components to the CSI definition section and reorganized the Further Reading list with proper formatting.
Restructured page with new section headings, removed formula discussion, streamlined introductory text, and added FAQ section with momentum indicator definition.
Added introductory overview sentence, table of contents, regulated brokers section with comparison table, and further reading section; removed outdated call-to-action box and reorganized technical indicators list.
Added introductory sentence with chart reference to Commodity Select Index section, reorganized "More Technical Indicators" list by adding Mass Index, and removed extra spacing in list items.
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