Trend CCI (Commodity Channel Index) for MetaTrader is an indicator that calculates momentum and defines the direction of the trend. This intuitive indicator was created by combining CCI functionality with a momentum detector.
This indicator can be used to determine market trends, price reversal zones and momentum of assets. The indicator can provide technical information at a glance.
When the trend CCI indicator is at or below the 0.00 level, it indicates a possible bullish/bearish bias. The lines -250 and +250 are areas that indicate overbought or oversold, where the price may reverse. Histogram bars, on the other side, indicate the strength (or momentum) of the price.
The indicator can also be used for different trading styles, such as scalping, intraday/out-of-day and swing positions. This indicator is recommended for novice, intermediate and advanced Forex traders.
Scalping trades can be done in shorter time frames (M30 or below). For Intraday/Intraday or Swing positions, time frames of H4 and above are recommended.
How to trade with the trending CCI indicator
Trend CCI is not recommended as a standalone entry/exit tool. For efficiency, it should be used in combination with other technical indicators and price behavior. It (Trend-CCI) cannot avoid false signals due to market movements.
Buy and sell signals. First, wait for the indicator to move to the oversold zone (-250). Wait for the indicator to cross the middle line of 0.00. These conditions will allow you to open a buy/long trade after a price action (e.g. bullish order block, bullish engulfment, etc.) confirms a bullish move.
This principle can also be applied to identify sell setups or entries. To better understand how to identify buy/sell signals, you can refer to the screenshot above. The indicator is also available for free download.
The Trend CCI indicator is a dynamic trading tool that allows you to analyze different market conditions. This indicator can help you improve your trading performance and may eventually lead to greater profits.