CCIMA Smoothed Indicator has been built with a combination of EMA (Exponential Moving Average) and CCI (Commodity Channel Index). These two different indicators intersect each other and produce crossover signals that indicate market trends. Although, this is a new idea it looks much effective in the trading charts.
CCIMA Smoothed Indicator is a good match for scalping and intraday trading tasks thus, works best within M1 to H1 timeframe charts of the MT4 platform. Besides, you’ll be able to apply it to trade all kinds of forex currency pairs around the markets.
CCIMA Smoothed Indicator: Explanation
After completing the installation of the indicator at the MT4 terminal, your chart will look like the following image
CCIMA Smoothed Indicator identifies the trend and the trade signals based on the crossover of a 12-day period EMA (Blue) and 14-CCI (Red). The EMA moves above the CCI means the bullish crossover trend signal and intends to go for a long entry. On the other hand, CCI moves above the EMA represents the bearish crossover signal which means, the validity of the bearish trend and its time to go for short entries.
Any opposite crossover signals after opening a trade position should be taken as a trade exit signal.
Continue Reading: BB Alert Arrows MT4 Indicator
CCIMA Smoothed Indicator
- EMA moves above the CCI and plots the bullish crossover signal
- A bullish bar forms right above the EMA level
- Activate long at the break of the respective bullish bar’s high
- Set stop loss below the EMA and CCI levels
- Exit long/take profit whenever EMA moves below the CCI level
- EMA moves below the CCI and plots the bearish crossover signal
- A bearish bar forms right below the EMA level
- Activate short at the break of the respective bearish bar’s low
- Set stop loss above the EMA and CCI levels
- Exit short/take profit whenever EMA moves above the CCI level