CCI MT4 Stock Indexes Indicator and CCI Indices Trading Signals

Developed by Donald Lambert

The CCI measures the variation of a commodity stock indexes price from its statistical mean/statistical average.

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

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

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

MT4 Indices Technical Indicator and Generating Indices Trading Signals

Overbought/ Oversold Levels

The CCI typically oscillates between ±100.

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

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

Buy Indices Trading Signal

If the CCI is oversold, levels below -100, then there is a pending market correction.

The oversold levels will remain intact until CCI starts to move above -100.

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

The Commodity Channel buy stock indices signal should be combined with a indices trend line break signal to confirm the buy.

Buy Trade

Sell Indices Trading Signal

If the CCI is overbought, levels above +100, then there is a pending market correction.

The overbought levels will remain intact until CCI starts to move below +100.

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

This Commodity Channel sell stock indices signal should be combined with a indices trend line break signal to confirm the sell.

Sell Trade

Divergence Indices Trading

Bullish Divergence

Bullish divergence occurs when stock indexes price is making new lows while the CCI is failing to surpass its previous low.

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

Bearish Divergence

Bearish Divergence occurs when stock indexes price is making new highs while the CCI is failing to surpass its previous high.

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

MT4 Stock Indexes Indicator