The CCI colored buy/sell trend indicator for Metatrader 4 is an easy-to-follow CCI (Commodity Channel Index) based buy/sell short-term trading indicator.
The indicator is composed of red and blue bars that appear in a separate trading window below the main MT4 chart.
- Blue CCI bars suggest the short-term trend is going up.
- Red CCI bars suggest the short-term trend is going down.
The CCI buy/sell indicator moves between +200 and -200 extreme values.
Use the CCI buy/sell indicator together with a longer-term trend-following indicator for better results.
Combine for example with:
- 200 period simple moving average
- 100 exponential moving average
And so on…
Trade CCI signals in the direction of the underlying trend.
When price trades for example above the 200-period SMA, trade the blue bars and avoid the red bars.
The opposite occurs when the underlying trend is negative.
Feel free to experiment with the different indicator’s inputs settings to suit your needs and preferences.
Free Download
Download the “!!!-MT4 X-CCI TREND-03.ex4” MT4 indicator
Indicator Chart (EUR/USD D1)
The EUR/USD daily chart below displays the CCI colored buy/sell trend Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the CCI colored buy/sell trend MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Buy the currency pair when the CCI bars change color from red to blue. The short-term trend is now upward.
Place a stop loss below short-term support or use your own preferred SL method.
Sell Signal: Sell the currency pair when the CCI bars change color from blue to red. The short-term trend is now downward.
Place a stop loss above short-term resistance or use your own preferred SL method.
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
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: CCI oscillator
