CCI Metatrader Indicator


Home > Technical analysis > Indicators and oscillators > Commodity Channel Index (CCI). Commodity Channel Index (CCI) First, the Commodity Channel Index was developed as the indicator for determining of reversal points in the commodity markets. Then it became rather popular in the share market and in Forex market. Donald Lambert created CCI.

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The Best indicators CCI (Commodity Channel Index) of this page are:

CCI indicator was created to identify bullish and bearish market cycles as well as to define market turning points, market strongest and weakest periods. Designed for commodities, CCI has quickly found its application in other markets including Forex.

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk. You can manage you subscriptions by following the link in the footer of each email you will receive. When traders need an indic ator for planning an entry for a trending market trading plan , normally oscillators come to mind.

Oscillators are a class of indicators designed to track price by moving oscillating either above or below a centerline. Today we will review CCI Commodity channel index , which is a popular oscillating indicator and discuss how we can use it to trade retracements back in the trend.

Both indicators use a mathematical equation to depict overbought and oversold levels for traders. Pictured above we can see these levels marke d with CCI moving between them.

This means traders will need to remain patient while waiting for one of these scenarios to occur. Knowing this, trend traders will wait for the indicator to move outside of one of these points before reverting back in the direction of the primary trend. Due to the recent strength of the Dollar, and knowing that price the price of Gold has been moving generally lower, trend traders should look to initiate new selling positions.

This creates an opportunity to sell the currency as momentum is returning back in the direction of the trend. Traders should only enter after a full candle close on their chart, thus confirming a reading under the overbought value. The above chart shows several past entries on Gold using CCI as an entry mechanism. Currently CCI is reading near its center line, so traders will need to wait for an opportunity to trade wait to trade the next retracement of the commodity.

To contact Walker, email instructor dailyfx. Want to learn more about trading CCI? Sign up for our free CCI training course and learn new ways to trade with this versatile oscillator. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Take a free trading course with IG Academy.

Our interactive online courses help you develop the skills of trading from the ground up. Develop your trading knowledge with our expert-led webinars and in-person seminars on a huge range of topics.

CCI measures the statistical variation from the average. Traders use the CCI in a variety of ways. Three common uses are: This article will be the first of three regarding common uses of CCI and will focus on how to use this oscillator in retracements. Therefore, if values stretch outside of the above range, a retracement trader will wait for the cross back inside the range before initiating a position. First identify the direction of the prevailing trend. If you are trading off of a 4 hour chart, determine the direction of the daily trend.

If you are trading off a 15 minute chart, determine the direction of a trend on the 2 hr chart. If the trend is up, wait for the CCI to move below oversold territory and cross back above to create a buy signal. Place your stop loss just below the swing low. Look to take profits at least twice the distance to your stop loss so you are maintaining at least a 1: Place your stop loss just below the swing high.

Breakout Trades and the Power of Price Channels 17 of DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

Take a free trading course with IG Academy. Our interactive online courses help you develop the skills of trading from the ground up. Develop your trading knowledge with our expert-led webinars and in-person seminars on a huge range of topics.

A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment. Results achieved on the demo account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the demo account.

Conditions in the demo account cannot always reasonably reflect all of the market conditions that may affect pricing and execution in a live trading environment. Swing trading, chart patterns, breakouts, and Elliott wave.