Donald Lambert is the brain behind the Commodity Channel Index (CCI), an oscillator that he first introduced in 1980.
The indicator’s main job is to gauge a security’s variation from the statistical average.
The CCI of Average Metatrader 5 forex indicator fluctuates above and below zero.
The number of periods used determines the percentage of CCI values that falls between +100 and -100.
Setting the CCI to shorter values will produce heightened volatility with a smaller percentage of values between +100 and -100.
On the contrary, assigning more periods to calculate the CCI will yield higher percentage of values between +100 and -100.
To eliminate false signals that are inherent in the CCI indicator, the CCI of Average MT5 forex indicator uses pre-filtered prices prior to its deployment in CCI calculation.
The EUR/JPY H1 chart below displays the CCI of Average Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the line of the CCI of Average Metatrader 5 forex indicator breaks above the -100.00 level.
Sell Signal: Go short when the line of the CCI of Average Metatrader 5 forex indicator dips below the 100.00 level.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the line of the CCI of Average MT5 forex indicator turns deep sky blue.
Exit sell trade: Close all sell orders if while a bearish trend is running, the line of the CCI of Average MT5 forex indicator turns light salmon.
Tips: The CCI of Average Metatrader 5 forex indicator is an easy-to-read technical tool that warns traders of overbought/oversold conditions in the market. Works for scalpers, day traders and swing traders.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable [CCI period, Average period 9<=1 for no average), Average method, Price, Level(s) (+ and – will be the same), Color change type], Colors, 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.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)