About the CCI Colored Buy Sell Trend Indicator
The CCI Colored Buy Sell Trend indicator is a short-term momentum tool based on the classic Commodity Channel Index.
It is designed to make CCI signals easier to read by converting raw oscillator values into color-coded bars displayed in a separate window below the main MT4 chart.
The indicator uses blue and red bars to reflect short-term trend direction.
Blue bars indicate bullish momentum, while red bars indicate bearish momentum.
This visual approach allows traders to quickly identify potential buy and sell opportunities without manually interpreting CCI levels.
The oscillator moves between the +200 and -200 levels, helping traders spot momentum extremes and trend shifts.
For best results, the indicator is intended to be used alongside a higher-timeframe trend filter.
This helps align short-term entries with the broader market direction.
Free Download
Download the “!!!-MT4 X-CCI TREND-03.ex4” MT4 indicator
Key Features
- CCI-based momentum indicator with color-coded bars.
- Blue bars signal bullish short-term conditions.
- Red bars signal bearish short-term conditions.
- Operates within the +200 to -200 CCI range.
- Displayed in a clean subwindow below the price chart.
- Compatible with all MT4 timeframes and symbols.
Indicator Chart
The chart shows the CCI Colored Buy Sell Trend indicator plotted in a separate window below the price chart.
Blue and red bars visualize short-term momentum, helping traders spot buy and sell signals that align with the prevailing trend.
Guide to Trade with CCI Colored Buy Sell Trend Indicator
Buy Rules
- Price must be trading above a long-term moving average.
- The CCI bars turn blue in the indicator window.
- Enter a buy trade at the close of the signal candle.
Sell Rules
- Price must be trading below a long-term moving average.
- The CCI bars turn red in the indicator window.
- Enter a sell trade at the close of the signal candle.
Stop Loss
- Set the stop loss a few pips beyond the long-term moving average.
- Exit the trade if price closes on the wrong side of the trend filter.
- Reduce position size when using tighter stop placement.
Take Profit
- Target previous highs or lows aligned with the dominant trend.
- Hold the trade while CCI bars remain the same color.
- Close the position if momentum weakens near the zero level.
CCI Colored Trend + Forecasting Moving Average Forex Day Trading Strategy
This MT4 strategy combines the CCI Colored Buy/Sell Trend indicator with the Forecasting Moving Average.
The CCI indicator paints blue bars to signal bullish momentum and red bars for bearish momentum.
The forecasting MA shows trend direction: a rising MA means a bullish trend; a declining MA means a bearish trend.
Together, they help you trade with the trend while timing entries on intraday timeframes like M15 and M30.
Buy Entry Rules
- Wait for the CCI colored histogram to turn blue, indicating upward momentum.
- Confirm the Forecasting Moving Average is sloping upward, showing a bullish trend.
- Enter a long trade at the close of the first candle after both conditions are met.
- Place a stop loss below the most recent swing low (for example, 20–30 pips on M30 or 15–25 pips on M15).
- Set take profit using a 1.5:1 or 2:1 reward-to-risk ratio, or aim for the next swing high/resistance area.
Sell Entry Rules
- Wait for the CCI histogram to turn red, signaling downward momentum.
- Confirm the Forecasting Moving Average is sloping downward, showing a bearish trend.
- Enter a short trade at the close of the first candle after both conditions align.
- Place a stop loss above the recent swing high (e.g., 20–30 pips on M30 or 15–25 pips on M15).
- Set take profit using a 1.5:1 or 2:1 reward-to-risk ratio, or target the next support area.
Advantages
- Combines momentum (CCI) and trend direction (forecasting MA) for stronger trade signals.
- Helps avoid countertrend trades by requiring trend confirmation.
- Visual signals are easy to read and act upon.
- Suitable for intraday trading on M15 and M30, offering a balance between noise and trend.
- Flexible exit options: fixed target or structure-based, depending on your style.
Drawbacks
- In very choppy or ranging markets, the CCI may flip often, creating false signals.
- The forecasting MA may lag during sharp reversals, causing late entries or missed trades.
- Stop losses can be large on M30 if swings are wide.
- Requires patience to wait for both indicators to align before entering.
Example Case Study 1
On GBPUSD M15 during the London session, the CCI histogram turned blue after a pullback, signaling renewed bullish momentum.
The Forecasting Moving Average was clearly sloping up.
Based on both signals, a buy trade was opened at 1.3055. A stop loss was placed at 1.3038 (17 pips).
The take profit target of 1.3090 (35 pips) was met as the price pushed higher over the next hour.
The MA remained upward sloping, confirming the strength of the move.
Example Case Study 2
On AUDNZD M30 during the New York session, the CCI turned red, showing bearish momentum.
At the same time, the Forecasting MA began to slope down.
A sell trade was entered at 1.0740 with a stop loss at 1.0765 (25 pips). The take profit was set at 1.0705 (35 pips).
Over the next two 30-minute candles, the price declined in a steady move, and the target was hit.
The declining MA validated that the trend was still in favor of the short trade.
Strategy Tips
- Avoid entering immediately after huge news releases — wait for the CCI and MA to readjust.
- Use higher-timeframe charts (e.g., H1) to confirm whether the general trend aligns with your intraday trades.
- Consider scaling out of part of your position if the market shows signs of reaching a strong support/resistance line.
- If the CCI flips prematurely before hitting take profit, you may close early to secure partial gains.
Download Now
Download the “!!!-MT4 X-CCI TREND-03.ex4” Metatrader 4 indicator
FAQ
Why is a trend filter recommended?
The CCI reacts quickly to price changes. Using a longer-term moving average helps avoid trading against the dominant market direction.
Which moving averages work well with this indicator?
Common choices include the 200-period simple moving average and the 100-period exponential moving average, depending on trading style.
Summary
The CCI Colored Buy Sell Trend indicator offers a simple and effective way to trade short-term momentum using the Commodity Channel Index.
Its color-based display removes much of the guesswork from traditional CCI interpretation.
When combined with a reliable trend-following filter, the indicator can help improve entry timing and reduce low-quality trades.
Its simplicity, flexibility, and visual clarity make it a useful addition to many MT4 trading setups.
