The CCI (Commodity Channel Index) Histogram MT4 forex indicator displays signals from CCI in one easy to read histogram chart window.
A bullish CCI trend occurs when the CCI histogram is positioned above the zero line (0.00).
A bearish CCI trend occurs when the CCI histogram is positioned below the zero line (0.00).
CCI histogram uses different colors:
- A blue colored histogram indicates that the CCI trend is bullish
- A red colored histogram indicates that the CCI trend is bearish
- A gray colored histogram indicates that the CCI trend is flat
Use the CCI histogram together with a trend following indicator such as a 200 period simple moving average or 100 period exponential moving average.
Trade signals from the CCI histogram in the direction of the underlying trend as indicated by the trend following indicator.
Ignore CCI signals against the underlying trend.
The default CCI period is set to 50 but can be easily modified from the indicator’s inputs tab.
Free Download
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Indicator Chart (EUR/USD H1)
The EUR/USD 1-Hour chart below displays the CCI Histogram Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the CCI Histogram MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Initiate long trade when the CCI histogram indicator paints a blue colored histogram (bullish). Confirm the overall bullish trend with a trend following indicator.
Sell Signal: Initiate short trade when the CCI histogram indicator paints a red colored histogram (bearish). Confirm the overall bearish trend with a trend following indicator.
Trade Exit: Use your own method of trade exit.
CCI Histogram Indicator + Algorithmic MegaTrend Forex Strategy
This MT4 strategy combines the CCI Histogram Indicator with the Algorithmic MegaTrend Indicator to create a trend-following forex strategy.
The CCI Histogram provides visual buy and sell signals: blue bars indicate bullish momentum and red bars indicate bearish momentum.
The Algorithmic MegaTrend indicator confirms the overall trend using the same color system: blue histogram bars indicate an uptrend and red histogram bars indicate a downtrend.
By combining the two indicators, traders can enter trades with high probability in the direction of the dominant trend.
This strategy works well on major currency pairs such as EUR/USD, GBP/USD, USD/JPY, and AUD/USD, and is suitable for M15, M30, and H1 charts.
Buy Entry Rules
- The Algorithmic MegaTrend histogram must be blue, indicating a bullish trend.
- The CCI Histogram shows a blue bar, confirming buy momentum.
- Enter a buy trade at the close of the confirming candle.
- Place stop loss below the most recent swing low or nearby support level.
- Take profit when the CCI Histogram turns red or when the Algorithmic MegaTrend histogram shows weakening momentum.
Sell Entry Rules
- The Algorithmic MegaTrend histogram must be red, indicating a bearish trend.
- The CCI Histogram shows a red bar, confirming sell momentum.
- Enter a sell trade at the close of the confirming candle.
- Place a stop loss above the most recent swing high or nearby resistance level.
- Take profit when the CCI Histogram turns blue or when the Algorithmic MegaTrend histogram shows weakening momentum.
Advantages
- Helps traders capture both trend direction and momentum for higher-probability trades.
- Flexible strategy suitable for multiple timeframes and trading styles, including day trading and swing trading.
- Reduces emotional trading by relying on objective signals from indicators.
- Allows traders to enter trades early in trend continuation moves for maximum potential profit.
- Can be combined with other confirmation tools, such as support and resistance, for stronger setups.
Drawbacks
- In flat or ranging markets, signals can become less reliable and may generate frequent false entries.
- Lower timeframes like M5 may produce more noise and require quick decision-making.
- Traders may experience small losses if momentum reverses sharply after entry.
- Requires careful monitoring of both indicators to avoid conflicting signals.
- May not perform well during sudden news events or unexpected market shocks.
Example Case Study 1 – EUR/USD M15
During the London session, EUR/USD showed a blue Algorithmic MegaTrend histogram, indicating an uptrend.
The CCI Histogram displayed a blue bar at 1.0875.
A buy trade was entered at 1.0875 with a stop loss at 1.0865 below the recent swing low.
Price moved upward and the trade was closed at 1.0890 when the CCI Histogram turned red, capturing 15 pips.
The Algorithmic MegaTrend remained blue throughout the trade, confirming the bullish trend.
Example Case Study 2 – GBP/JPY M30
GBP/JPY on the M30 chart during the New York session showed a red Algorithmic MegaTrend histogram, indicating a downtrend.
The CCI Histogram displayed a red bar at 152.35.
A sell trade was entered at 152.35 with a stop loss at 152.50 above the recent swing high.
Price dropped and the trade was closed at 152.10 when the CCI Histogram turned blue, capturing 25 pips.
Strategy Tips
- Use major pairs with high liquidity for smoother trade execution.
- Focus on M15, M30, and H1 charts for more reliable signals.
- Do not enter trades if the CCI Histogram signal conflicts with the Algorithmic MegaTrend trend.
- Take profits dynamically based on histogram color changes rather than fixed pip targets.
- Maintain a trade journal to track pairs, sessions, and performance for continuous improvement.
Download Now
Download the “cci-histogram.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (CCI A period, CCI B period) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: histogram
