The Weighted CCI Metatrader 4 forex indicator puts more weight on the most recent commodity channel index data and less on its past data.
The Weighted CCI indicator is able to achieve this by multiplying each bar’s price by a weighting factor (which has a default value of 1.0 on this indicator).
The Weighted CCI indicator has marked levels of +200 and -200, where the region above the former is said to be overbought, and the zone below the latter is tagged oversold.
The indicator basically identifies overbought and oversold levels.
The CAD/JPY H1 chart below displays the Weighted CCI Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the dodger blue line of the Weighted CCI Metatrader 4 forex indicator breaks above the lower -200 extreme level (oversold level).
Sell Signal: Go short when the dodger blue line of the Weighted CCI Metatrader 4 forex indicator breaks below the upper +200 extreme level (overbought region).
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the dodger blue line of the indicator break above the +200 level.
Exit sell trade: Close all sell orders if while a bearish trend is running, the dodger blue line of the indicator break below the -200 level.
Tips: Irrespective of how the Weighted CCI indicator is used, technical analysts should deploy the indicator in conjunction with other technical tools or candlestick patterns.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (TCCIp, CC1p, overbslevel, triglevel, weight), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend | momentum
Copy and paste the weighted-cci.ex4 indicator 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)