CCI or Commodity Channel Index signals are shown in a single, easy-to-read histogram chart window with the CCI Histogram MT4 forex indicator. It shows a bullish CCI trend when the CCI histogram is above the zero line. When the CCI histogram falls below zero, a bearish CCI pattern is created.
The CCI histogram employs a variety of colors:
• A blue-colored histogram denotes a bullish CCI pattern.
• A red colored histogram denotes a bearish CCI pattern.
• A gray-colored histogram signifies a flat CCI trend.
In addition to the CCI histogram, use a trend-tracking indicator such as a 200-period simple moving average or a 100-period exponential moving average.
As shown by the trend following predictor, the CCI histogram generates trade signals in the direction of the underlying trend. Ignore CCI signals if they go against the overall trend. The CCI length is set to 50 by default, but it can easily be adjusted using the inputs tab of the indicator.
EXAMPLE OF CHART
On the EUR/USD 1-Hour chart below, you can see how the CCI Histogram Metatrader 4 Forex indicator works.
CCI is a straightforward predictor with a drab look. When the CCI is histogrammed like this, the visual appearance improves dramatically. When the CCI reverses, this indicator specifically changes color. As a result, Forex traders should have no trouble trading with the CCI histogram. It's also really simple to adjust the color.
Hints to remember:
It is recommended to use it as a normal CCI because it is clearly histogrammed. You should consider placing a buy order if the CCI number is greater than 100. It's a good time to sell if it falls below -100. You have the option to terminate positions if the opposite signal occurs. If the color of the histogram changes, it's usually a sign that it's time to quit or find a new career. If the indicator changes color to grey (white) after you place a buy order, for example, it might be time to exit that position because the CCI Histogram indicates the pattern has changed. On the other hand, trading solely on the CCI has a number of disadvantages. As a consequence, when combined with other metrics, the winning percentage increases.
The following parameters should be considered:
• To measure the CCI, periods are used.
• num bars - The sub-number window's of CCI bars.
SIMPLE TRADING INDICATOR
The simple signals produced by the CCI Histogram MT4 forex indicator are as follows:
It's time to start a long trade when the CCI histogram indicator displays a blue colored histogram (bullish). Confirm the general bullish pattern using a trend monitoring predictor. It's time to start a short trade when the CCI histogram indicator shows a red colored histogram (bearish). Confirm the general bearish pattern by using a trend tracking indicator.
Building Your Own Trade Exit Strategy: Create your own trade exit strategy.
The CCI Trend Histogram as a Forex Trading Strategy
Extensive experience in the currency trading industry is unreplaceable, but it can be gained by working your way up using a proven trading strategy. The CCI Trend Histogram forex trading strategy is intended to help you walk through gains while retaining the calmness that currency traders need in order to stay in the black. The obvious use of the ASCTrend BO.ex4 and CCI-Histogram.ex4 technical indicators to detect when a pattern is kicking off and measure when it is about to shift could entice any trader to give this approach a shot.
It is recommended to trade at any time. Pairs of currencies are any two or more currencies that are traded together (majors, crosses, exotics)
Buy Trade Example:
CHART OF FIG. 1.0
Make a buy entry if you see the following indicator or chart pattern on your screen:
1.When the ASCTrend BO MT4 indicator's aqua upward pointing arrow aligns slightly below price bars, as shown in Fig. 1.0, price is to be taken to the upward, i.e. a signal to buy the indicated currency pair.
2. If the CCI-Histogram custom indicator's histograms, dark gray and royal blue, fit above the 0.00 standard, as shown in Fig. 1.0, it indicates upward market pressures, and a buy signal is appropriate.
For a buy entry, set your stop loss 2-5 pips below help. Take Profit/Buy Entry/Exit Strategy
Exit or take profits if any of the following rules or conditions apply:
1. During a bullish signal, if a magenta downward-pointing arrow appears above price bars (see Fig. 1.0), it is a signal to exit or take profit right away.
2. When the maroon line of the CCI-Histogram custom indicator falls below 0.00 when buy orders are active, it means that bulls' power is waning and an exit or take profit is recommended.
Sell Trade Example:
CHART OF FIG. 1.1
If the following conditions apply, place a sales order:
1. Price is said to be pushed lower when the ASCTrend BO MT4 indicator's magenta downward pointing arrow is aligned slightly above price bars, as shown in Fig. 1.1. For example, a sell trigger on a particular forex pair.
2. If the CCI-Histogram custom indicator's histograms (dark gray & red) shape below the 0.00 mark, as seen in Fig. 1.1, it indicates a downward price push, and thus a signal to go long on the pair of interest.
Place your stop loss 2.5 pips above resistance for a sell entry. For a sell entry, the exit strategy is to take a profit.
If the following comes to mind, exit or take a profit:
1. During a bearish warning, if an aqua upward pointing arrow appears below the candlesticks, it is a signal to exit or take benefit right away. Take a look at Figure 1.1 to see what I'm talking about.
2. If the maroon line of the CCI-Histogram custom indicator rises above 0.00 when sell orders are active, it indicates that bearish force is waning and that an exit or take profit is recommended.
Via the use of its upward and downward pointing arrows, the ASCTrend BO.ex4 custom indicator is used to deliver trading signals. The CCI Histogram.ex4 is a Commodity Channel Index (CCI) variant that compares the current price level to a mean price level over a given time span.
How do I add the CCI histogram MT4 indicator to my MetaTrader 4 forex trading platform?
• Open the CCI histogram.rar file you downloaded.
• Choose open data folder then File menu in the Mt4 platform.
• Open the indicators folder from the Mql4 folder.
• The CCI histogram should now be pasted in place.
Last edited by BlissfulTraders; 14-05-2021 at 02:17 PM.
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