The Exponential Commodity Channel Index (CCI) Forex momentum indicator uses an EMA instead of the default simple moving average.
It’s a momentum indicator that measures overbought and oversold market conditions.
Overbought and oversold market conditions are determined as follows:
- The market is considered overbought when the exponential CCI reaches the 100 level.
- The market is considered oversold when the exponential CCI reaches the -100 level.
The following indicator inputs can be modified: averaging period, adjustment constant.
It’s recommended to combine the CCI momentum indicator with trend indicators and only take signals in the direction of the overall trend.
- When the trend is upward, only trade the oversold CCI signals.
- When the trend is downward, only trade the overbought CCI signals.
Make yourself familiar with this technical indicator and test it first on a demo account.
It supports all time frames, Forex pairs and any other trade instrument.
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The following chart shows how the Exponential Commodity Channel Index indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Exponential Commodity Channel Index Indicator?
Find a simple trading example below:
- A buy signal is given when the blue colored CCI line turns back above -100 from below and the overall trend is upward.
- Open a buy trade and place your stop loss 2-3 pips below technical support.
- Exit the buy trade for a fixed take profit target of your preference, or wait for the next sell signal.
- A sell signal is given when the blue colored CCI line turns back below 100 from above and the overall trend is downward.
- Open a sell trade and place your stop loss 2-3 pips above technical resistance.
- Exit the sell trade for a fixed take profit target of your preference, or wait for the next buy signal.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the Exponential Commodity Channel Index.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration