The Commodity Channel Index (CCI) is an oscillator that is often used by forex traders to identify oversold and over bought conditions much in the same way as the RSI or Stochastics.

How it Works

The idea behind this indicator is simple, we wait for price to reach an extreme (overbought or oversold) and then trade when price appears to change direction in the hope of catching a move out of the area.

Buy signals - The indicator waits for the CCI to become oversold (a value below -100). The indicator notifies you when the CCI moves back above the -100 line.

Sell signals - Sell signals occur when the CCI becomes overbought (a value above +100) and notifies you when the value crosses back below +100.

When combined with trend analysis this strategy offers some promising results however you may notice extended periods of drawdown. To combat this, you can use other indicators or price action to improve your entries.

This indicator will save you many hours in the markets giving you more time to cherry pick the best entries to trade. The indicator works in the background and draws arrows on the chart when a trading opportunity is identified.

Inputs

• CCIPeriod - The period of the CCI indicator being used (the default is 14).
• Send_Email - The indicator will send a notification by email.
• Audible_alerts - Standard notification via the MT4 'alert' window including sound.
• Push_Notifications - The indicator will send a push notification to your smartphone via the metaTrader 4 iOS/Android app.

Tips

1. Configuration for Email and Push notifications can be configured by going to 'Tools' and then 'Options'.
2. Results appear to be improved when trading inline with the dominant trend.
3. For best results, always use additional analysis to compliment any indicator.
4. You can control the timeframes that are being monitored by the indicator using the visualization tab (only timeframes that are selected will be monitored).