The Commodity Channel Index Metatrader 4 Forex indicator is an oscillator originally designed for the commodity markets, but can be used too on the forex market.
In fact, it’s a very popular Forex indicator used by many professional traders.
It allows traders gauge the strength behind a price movement.
Generally speaking, it’s designed to give traders a good impression of bullish or bearish forces that are in the driving seat.
In contrast to the original CCI indicator found on the MT4 platform that shows distinct key values at 100 and -100, the Commodity Channel Index doesn’t.
It is therefore, not bounded within a range.
- Just to get a clearer picture of how the market is fairing, give more attention to the position of the dodger blue line in relation to the zero horizontal signal level.
- It is commonplace to designate price as being bullish or bearish when the dodger blue line of the Commodity Channel Index indicator breaks above or below the zero-signal level.
- The default CCI Period is set at 14, but when modifying this value within the Commodity Channel Index indicator’s input variable, we advise the use of values between 20 – 25.
Feel free to explore the Commodity Channel Index Forex indicator’s different parameters and settings to create your own personalized indicator setup.
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Commodity Channel Index Forex Indicator Chart (CAD/CHF H1 Chart Example)
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
Finding Buy and Sell Triggers With The Commodity Channel Index MT4 Indicator
Buy Signal: Go long when the dodger blue line of the Commodity Channel Index indicator gets printed above the zero-signal level.
When the blue line of the Alligator indicator crosses below the lime and red lines in a bottom up manner, it is a buy confirmation.
Sell Signal: Go short when the dodger blue line of the Commodity Channel Index indicator gets printed below the zero-horizontal level.
When the blue line of the Alligator indicator crosses above the lime and red lines in a top downward fashion, it is a sell confirmation.
Exit buy trade: Close all buy orders if while a bullish trend is running, the Commodity Channel Index indicator pushes its dodger blue line below the 0.00 signal level. Else, close buy orders when the red & lime colored lines of the Alligator indicator intersect.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the Commodity Channel Index indicator forces its dodger blue line above the 0.00 center level. Else, close sell orders when the red & lime colored lines of the Alligator indicator intersect.
Tips: The Commodity Channel Index indicator is a trading tool that has been improved upon as a result technological advance.
The indicator clearly offers a vivid and easy way of spotting when price is likely bullish or bearish.
Interestingly, it can also be deployed in the Forex and stocks markets, despite its commodity origin.
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More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: Oscillator
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.