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 indicator can achieve this by multiplying each bar’s price by a weighting factor (which has a default value of 1.0 on this indicator).
It 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.
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Indicator Chart (CAD/JPY H1)
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 while a bullish trend is ongoing, the dodger blue line of the indicator breaks above the +200 level.
- Exit sell trade: Close all sell orders while a bearish trend is running, the dodger blue line of the indicator breaks 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 Weighted CCI + Wildan Trend System Scalping Strategy
This strategy combines the Weighted CCI MT4 Indicator with the Wildan Trend System MT4 Indicator.
The Weighted CCI oscillates with a dodger blue line: when this line breaks above –200 (oversold), it signals a potential long entry; when it breaks below +200 (overbought), it signals a potential short.
The Wildan Trend System displays a histogram: blue bars show a bullish trend, red bars show a bearish trend.
By combining the two, the strategy aims to pick scalping entries when both momentum extremes and trend direction align, increasing the odds of profitable, quick trades.
This method is most effective on short-term timeframes such as M1, M5, or M15, making it well-suited for scalpers.
It works especially well during active market sessions when the price is more likely to swing, and momentum extremes (captured by the CCI) are more meaningful.
Buy Entry Rules
- The dodger blue line of the Weighted CCI must break above –200, exiting the oversold zone.
- The Wildan Trend System histogram must be blue, indicating bullish trend strength.
- Enter a long position at the close of the candle that confirms the CCI break, and with the trend histogram still blue.
- Place the stop loss just below the most recent swing low on the chosen timeframe.
- Exit (take profit) when either:
- The Weighted CCI line reverses and crosses back below –200 (signaling loss of momentum), or
- The Wildan Trend System histogram flips from blue to red (trend weakening).
Sell Entry Rules
- The Weighted CCI dodger blue line must break below +200, exiting the overbought zone.
- The Wildan Trend System histogram must be red, confirming bearish trend strength.
- Enter a short position on the close of the candle in which the CCI breaks down and the histogram remains red.
- Place the stop loss just above the most recent swing high.
- Exit (take profit) when either:
- The Weighted CCI line reverses upward and crosses back above +200, or
- The Wildan Trend System histogram turns from red to blue (trend weakening).
Advantages
- Combines momentum extremes (Weighted CCI) with trend confirmation (Wildan histogram).
- Helps avoid entering weak or fading moves by requiring both indicators to align.
- Good for scalping: designed for short timeframes (M1, M5, M15).
- Exit rules allow dynamic exit based on changing momentum or trend.
- Relatively clear risk management: stop loss based on swing points, exit tied to indicator reversals.
Drawbacks
- In strongly trending markets, the Weighted CCI may stay beyond +200 or –200 for a while, making entries tricky.
- Scalping requires quick decision-making, especially when watching both momentum and trend indicators.
- The exit signals may come late in fast reversals, leading to giving back some profit.
- Frequent trades may lead to higher transaction cost impact (spread, slippage) if not managed well.
Example Case Study 1
On the EUR/JPY M5 chart during the London session, the Weighted CCI line dropped into deep oversold territory and then broke above –200.
At that same time, the Wildan histogram was blue, indicating bullish trend strength.
A long position was opened at the close of the confirming candle, with a stop loss placed just below the most recent M5 swing low (about 8 pips).
As the trade matured, the CCI began to drop again and eventually crossed back below –200, while the histogram remained blue.
That reversal of the CCI initiated the exit, locking in a solid scalp profit before any major pullback.
Example Case Study 2
On the GBP/USD M1 chart during the New York open, the CCI line spiked up into overbought territory and then broke down below +200.
Simultaneously, the Wildan histogram was red, confirming downward trend strength.
A short trade was taken at the candle close, with the stop loss placed above the recent swing high (12 pips).
The trade moved in favour quickly, and then the histogram flipped to blue, signaling trend weakening.
That flip was used to exit the trade, preserving most of the profit before a corrective bounce started.
Strategy Tips
- Avoid trades when the CCI just hovers near ±200 without a clean break; look for strong momentum shifts.
- Use small position sizes for scalping to protect against tight stop losses being hit.
- Consider combining price action (e.g. support/resistance) with these signals for higher-probability entries.
- Backtest the strategy on different pairs to find which ones produce the best signal alignment.
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Download the “weighted-cci.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customisation 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
