Weighted CCI is a Commodity Channel Index based trend-following forex trading indicator which applies CCI in a weighted method for determining the trend directions of the market. It uses a very simple demonstration process in a separate indicator window which can be mastered by any newbie traders.
Weighted CCI is a stand-alone all round indicator which can be applied to trade all kinds of forex currency pairs and suits great with all sorts of timeframe charts within the MT4 trading platforms.
Weighted CCI Overview
After the installation when you load the indicator at the MT4 terminal, your trading chart will appear like the following image:
Weighted CCI Anatomy
Weighted CCI applies two separate patterns of CCI for determining the market trend as correctly as possible. TCCI moves above the WCCI and both of them stay above the zero levels are interpreted as the buy-opportunity along the confirmation of the bullish trend.
On the contrary, TCCI moves below WCCI and both of them dives below the zero levels represents the sell signal with the confirmation of the bearish trend. This indicator value reaches near 200 level indicates the overbought condition of the market and its value near -200 signals the oversold condition of the market.
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Weighted CCI: Buy Parameters
- The indicator bounces upwards from its oversold area (-200)
- TCCI moves above the WCCI and both remains above the zero level
- Buy triggers when the above conditions are met
- Set stop loss below the nearest swing low of the market
- Exit long/take profit whenever the indicator value turns negative
Weighted CCI: Sell Parameters
- The indicator jumps downwards from its overbought area (200)
- TCCI moves below the WCCI and both remain below the zero level
- Sell triggers when the above conditions are met
- Set stop loss above the nearest swing high of the market
- Exit short/take profit whenever the indicator value turns positive