PCCI is an acronym for Perfect Commodity Channel Index and represents a high frequency side of the exchange rate fluctuations normalized according to its standard deviation.
The PCCI Metatrader 5 forex indicator resembles D. Lambert’s Commodity Channel Index by the means of it calculation.
The formula for the calculation of the pcci Metatrader 5 forex indicator is as follows:
PCCI(bar) = close(bar) – FATL(bar)
close(bar) – closed bars prices;
FATL(bar) – FATL digital filter.
Essentially, PCCI is computed as a difference between a day closing price along with its statistical expectation displayed by a FATL value, whereas the CCI is computed as a normalized difference between the current price and its moving average.
This makes the PCCI MT5 forex indicator more effective than CCI.
The EUR/CAD H4 chart below displays the PCCI Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the magenta line of the PCCI Metatrader 5 forex indicator jumps above the zero level, after confirming entry with the help of trend indicators.
Sell Signal: Go short when the magenta line of the PCCI Metatrader 5 forex indicator jumps below the zero level, after confirming entry with the help of trend indicators.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the magenta line of the indicator dips below the zero level.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the magenta line of the indicator jumps above the zero level.
Tips: The PCCI MT5 forex indicator is not a great technical tool for pinpointing exit points in the market, but combining it with other technical indicators will increase its correctness for all kind of trading styles.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Horizontal shift of moving average in bars), 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 pcci.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)