Our custom developed Forex CCI Alternative Indicator. The CCI was originally developed to spot long-term trend changes but has been adapted by traders for use on all markets or time frames. Trading with multiple time frames provides more buy or sell signals for active traders. Traders often use the CCI on the longer-term chart to establish the dominant trend and on the shorter-term chart to isolate pullbacks and generate trade signals.
- The CCI is a market indicator used to track market movements that may indicate buying or selling.
- The CCI compares current price to average price over a specific time period.
- Different strategies can use the CCI in different ways, including using it across multiple time frames to establish dominant trends, pullbacks, or entry points into that trend.
- Some trading strategies based on CCI can produce multiple false signals or losing trades when conditions turn choppy.
Understanding How Traders Use CCI (Commodity Channel Index) to Trade Trends
The CCI compares the current price to an average price over a period of time. The indicator fluctuates above or below zero, moving into positive or negative territory. While most values, approximately 75%, fall between -100 and +100, about 25% of the values fall outside this range, indicating a lot of weakness or strength in the price movement.
Feel free to use this indicator together with our other technical indicators (oscillators, momentum) or price action methods to maximize your trading accuracy.
The EUR/GBP 15 minute chart below displays the Forex CCI Alternative Indicator in action.
Copy and paste the Forex CCI Alternative Indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)
How to remove Indicator from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete