The CCI (Commodity Channel Index) Histogram MT4 forex indicator displays signals from CCI in one easy to read histogram chart window.
A bullish CCI trend occurs when the CCI histogram is positioned above the zero line (0.00).
A bearish CCI trend occurs when the CCI histogram is positioned below the zero line (0.00).
CCI histogram uses different colors:
- A blue colored histogram indicates that the CCI trend is bullish
- A red colored histogram indicates that the CCI trend is bearish
- A gray colored histogram indicates that the CCI trend is flat
Use the CCI histogram together with a trend following indicator such as a 200 period simple moving average or 100 period exponential moving average.
Trade signals from the CCI histogram in the direction of the underlying trend as indicated by the trend following indicator.
Ignore CCI signals against the underlying trend.
The default CCI period is set to 50 but can be easily modified from the indicator’s inputs tab.
The EUR/USD 1-Hour chart below displays the CCI Histogram Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the CCI Histogram MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate long trade when the CCI histogram indicator paints a blue colored histogram (bullish). Confirm the overall bullish trend with a trend following indicator.
Sell Signal: Initiate short trade when the CCI histogram indicator paints a red colored histogram (bearish). Confirm the overall bearish trend with a trend following indicator.
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 A period, CCI B period) 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-histogram.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)