Introduction to the CCI Alert MTF Indicator
The CCI oscillator was developed by Donald Lambert to help traders assess price trend direction and momentum strength, as well as potential mean reversals.
The CCI Alert MTF is a variation of the widely used CCI oscillator.
What is the CCI Alert MTF Indicator?
The CCI Alert MTF Indicator is a momentum indicator which is based on the Commodity Channel Index (CCI) oscillator. It is a modified version of the CCI oscillator which provides alert signals whenever it detects a momentum breakout signal based on its CCI line.
The CCI Alert MTF Indicator plots a line which oscillates around zero, with values that could oscillate to more than 200 or less the -200.
This version of the CCI has markers at -200, -100, 100, and 200.
A CCI line breaching above 100 indicates that a bullish momentum is developing, while a CCI line dropping below -100 indicates that a bearish momentum is developing.
This version of the CCI would cause the CCI line to change color whenever these levels are breached. It plots a lime green line whenever the CCI line breaches above 100, and a red line whenever the CCI line drops below -100. It also provides signal alerts whenever the CCI line breaches these levels.
A CCI line breaching above 200 can also be considered as an overbought level, while a CCI line dropping below -200 indicates an oversold level. As such, these are considered critical levels where mean reversals may occur. This indicator also provides signal alerts whenever the CCI line reaches 250 or -250, which is considered the critical level.
This indicator also provides alert signals whenever the CCI line crosses zero, as this would indicate a momentum bias reversal.
How the CCI Alert MTF Indicator Works?
The CCI Alert MTF Indicator has an algorithm which calculates for the difference between the Typical Price and a moving average line. It then divides the difference by the product of 0.15 and a Mean Deviation.
Typical Price (High + Low + Close) / 3
CCI = (Typical Price – MA) / (0.15 x Mean Deviation)
This version of the CCI also includes the alert signals whenever the levels mentioned above are breached.
How to use the CCI Alert MTF Indicator for MT4
The CCI Alert MTF Indicator has several options within its indicator settings.
“CCI Period” refers to the number of bars used for the CCI calculation and is the main variable which modifies the sensitivity of the indicator.
“UpperTriggerLevel” and “LowerTriggerLevel” refers to the levels wherein the momentum signals are generated.
“CriticalLevel” refers to the levels which would be considered overbought or oversold.
“TimeFrame” modifies the timeframe on which the indicator is based on. This input variable is in minutes.
Buy Trade Setup
When to Enter?
Open a buy order as soon as the CCI line breaches above 100 and a bullish signal is generated.
When to Exit?
Observe the market closely as the CCI line breaches above 250 and close the trade as soon as a bearish price action develops.
Sell Trade Setup
When to Enter?
Open a sell order as soon as the CCI line drops below -100 and a bearish signal is generated.
When to Exit?
Observe the market closely as the CCI line drops below -250 and close the trade as soon as a bullish price action develops.
Conclusion
This indicator is simply an improved version of the CCI oscillator, which is an effective momentum oscillator. Traders can incorporate this into a strategy in confluence with other technical indications.
MT4 Indicators – Download Instructions
CCI Alert MTF Indicator for MT4 is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data.
CCI Alert MTF Indicator for MT4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
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How to install CCI Alert MTF Indicator for MT4.mq4?
- Download CCI Alert MTF Indicator for MT4.mq4
- Copy CCI Alert MTF Indicator for MT4.mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader 4 Client
- Select Chart and Timeframe where you want to test your MT4 indicators
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 4 Client
- Right click on CCI Alert MTF Indicator for MT4.mq4
- Attach to a chart
- Modify settings or press ok
- Indicator CCI Alert MTF Indicator for MT4.mq4 is available on your Chart
How to remove CCI Alert MTF Indicator for MT4.mq4 from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
CCI Alert MTF Indicator for MT4 (Free Download)
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