The CCI – T3 based forex trading indicator for MetaTrader 5 is well-known all over the internet as a modified CCI indicator that is computed using the Simple Moving Average along with mean deviation.
The CCI indicator that we all know is calculated based on the aforementioned.
There are numerous ways in which smoother results can be derived.
Traders can actually smoothed priced before they are being deployed in the calculation (average or deviation), and at that point the deviation and average can be interchanged.
In this modified CCI version, average is substituted with T3 and the deviation is swapped with EMA deviation.
We simply avoid using the T3 deviation because of the likelihood of yielding negative values, which makes it incompatible for computing the CCI.
But whatever the case may be, the result derived from the CCI – T3 based indicator is fast and responsive (as anticipated) and also it is smoother than the typical CCI (also as anticipated).
As an oscillator, the CCI – T3 based forex trading indicator gives buy and sell alerts while crossing over and under the zero line.
Seemingly, when the silver line of the CCI – T3 based MT5 indicator turns lime green while crossing above the upper horizontal dotted lime green line, price is said to have entered the overbought region.
If the silver line of the CCI – T3 based MT5 indicator turns orange while dipping below the lower horizontal orange dotted line, price is said to be oversold.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (CCI period, Price, T3 “hot”, T3 type, Smoothing period, Smoothing T3 “hot”, Smoothing T3 type, Level up, Level Down), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the CCI – T3 based.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)