Commodity Channel Index (CCI) MetaTrader 4 Indicator & CCI Signals

Developed by Donald Lambert

The Commodity Channel Index measures the variation of a commodity price from its statistical mean/statistical average.

This MT4 Indicator is an MetaTrader 4 Indicator which oscillates between high levels and low levels

When the CCI is high it shows that price is unusually high compared to the its average.

When the CCI is low it shows that price is unusually low compared to the its average.

MetaTrader 4 Indicator & Generating Signals

Overbought/ Oversold Levels

The CCI typically oscillates between ±100.

MT4 Indicator values above +100 indicate an overbought conditions and an impending market correction.

MT4 Indicator values below -100 indicate an oversold conditions and an impending market correction

Buy Forex Signal

If the Commodity Channel Index indicator is over-sold, areas below -100, then there's a pending market correction.

Over-sold levels will remain intact until Commodity Channel Index technical indicator starts to move above -100.

When price starts moving above -100 then that is interpreted as a buy.

The Commodity Channel buy signal should be combined with a trendline break signal to confirm the buy.

Buy Trade

Sell Trading Signal

If the Commodity Channel Index is over bought, zones above +100, then there is a pending market correction.

Overbought areas will remain intact until CCI indicator starts to move below +100.

When price starts moving below +100 then that is a interpreted as sell.

This Commodity Channel sell signal should be combined with a trendline break signal to confirm the sell.

Sell Trade

Forex Divergence FX Trading

Bullish Forex Trading Divergence Setup

Bullish divergence forms when price is making new lows while the CCI technical indicator is failing to surpass its previous low.

This is a bullish trading signal because the divergence will be followed by an upwards market correction.

Bearish FX Trading Divergence

Bearish Divergence forms when price is making new highs while the CCI indicator is failing to surpass its previous high.

This is a bearish trading signal because the divergence will be followed by a downward market correction.

MetaTrader 4 Technical Indicator