The CCI of Average Floating Levels metatrader 5 forex indicator is built on the foundation of the commodity channel index (CCI).
It’s an oscillator originally designed by Donald Lambert in 1980.
The indicator therefore gauges a security’s variation from the statistical mean.
The CCI indicator has a drawback of yielding too many false signals when set in accordance to levels crossing.
Pre-filtering of prices prior to being used in the CCI calculation is one way significant lag can be eliminated.
The CCI of Average Floating Levels indicator does the aforementioned but the line color changes on the indicator can also be used as a signal indicator.
It’s recommended to combine the indicator with a trend following forex indicator.
For instance, combine with a 200 period simple moving average or 100 period exponential moving average.
The EUR/CAD H1 chart below displays the CCI of Average Floating Levels Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the dual colored line of the CCI of Average Floating Levels Metatrader 5 forex indicator turns deep sky blue.
Sell Signal: Go short when the dual colored line of the CCI of Average Floating Levels Metatrader 5 forex indicator turns light salmon.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the line of the indicator changes to light salmon.
Exit sell trade: Close all sell orders if while a bearish trend is running, the line of the indicator changes to deep sky blue.
Tips: The fluctuations of the CCI of Average Floating Levels indicator takes place above and below the zero level.
It is for this reason that currency traders can use the line cross as a signal for probable market directions.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable [CCI period, Average period (< = 1 for no average), Average method, Price, Floating levels period, Floating levels up %=50, Floating levels down %=50, Color change type], width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend | oscillator
Copy and paste the CCI of average (fl).ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)