Commodity Channel Index Oscillator (CCI) Download MT4 - Free [TFlab] - MetaTrader 4 Resources

The Commodity Channel Index (CCI) indicator is a popular technical analysis tool in financial markets, especially in Forex market and stock market, and is recognized in Meta Trader 4.

Designed by Donald Lambert, this oscillator measures the deviation of price from its moving average, helping traders identify entry and exit points and analyze overbought and oversold conditions.

Indicator specification table

The CCI indicator works by analyzing price fluctuations, potential reversal points and divergences between price and the indicator. Buy and sell signals in this oscillator are obtained by checking the high and low values ​​of CCI.

The Commodity Channel Index (CCI) has different lines:

• The middle line is shown in green and represents the zero line of the indicator
• The blue line represents CCI
• The red line "Turbo CCI" has a shorter period than CCI

Uptrend Condition

The 30 minute EUR/USD price chart shows the functionality of the CCI indicator in an uptrend. Generally speaking, when the blue line (CCI) breaks above the +100 level, it indicates the market’s strength uptrend .

To assess the sustainability of the uptrend, the CCI should remain above the +50 zone at all times.

One of the key characteristics of the CCI indicator is its ability to detect divergence; if the price continues to rise but the CCI starts to fall, this divergence may be a warning of weakening upward momentum.

Downtrend Condition

The 1-hour Binance Coin (BNB) price chart shows how the CCI indicator works during a downtrend. When the blue line (CCI) breaks below the -100 level, it indicates the strength of the downtrend.

To assess the sustainability of the downtrend, “CCI” should always remain below the -50 range. The image shows a divergence between the price movement and the “CCI” oscillation, where the price is falling but the “CCI” oscillation is recording higher points.

This divergence could be a warning of weakening downside momentum.

Settings

• Turbo CCI period (T CCI period): The period of “Turbo CCI” is set to 7;
• CCI Period: The time range for calculating the Commodity Channel Index (CCI) is set to 13;
• Overbought/oversold level (Over BS Level): The overbought and oversold level is 200;
• Trigger Level: The trigger level is set to 50;
• Weight: The overall calculation period is set to 1.

Conclusion

The Commodity Channel Index (CCI) is a signals forecasts indicator used to identify trends and entry/exit points in financial markets.

By calculating the difference between the average price and the average Simple Moving Average (SMA), this indicator allows analysts to identify overbought and oversold levels and analyze price movements.