The CCI Divergence forex indicator for Metatrader 4 displays divergences between price and the CCI technical indicator.
A green CCI divergence arrow on the chart indicates that a bullish divergence has occurred between price and CCI.
A red CCI divergence arrow on the chart indicates that a bearish divergence has occurred between price and CCI.
CCI divergences are used to identify market trend reversals across all time frame’s.
In order to make an informed trade decision, always confirm CCI divergence trades with other technical tools (indicators, price action,..).
The default CCI period is set to 20 but can be modified from the indicator’s inputs tab.
The USD/CHF 1-Hour chart below displays the CCI Divergence Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the CCI Divergence MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Go long when a green CCI divergence arrow appears on the chart. Confirm the long trade with other analysis tools.
Buy Scalp: Go short when a red CCI divergence arrow appears on the chart. Confirm the short trade with other analysis tools.
Trade Exit: Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (CCI period, positive sensitivity, negative sensitivity) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the cci-divergence.ex4 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)