October 06, 2017

How to use the Indicator CCI in Online Forex Trading

indicator CCI forex trading

In the online forex trading using metatrader 4 indicators to know the CCI. CCI or the Commodity Channel Index is an indicator of the type of oscillator used to measure the level of saturation prices (overbought/oversold). Indicator CCI was first introduced by Donald Lambert in the year 1980.

In fact the beginning of the use of these indicators is special to know saturation buy and sell the commodity markets are saturated. But as time went on, the indicator CCI also can be used on other types of market, such as online forex trading.

Most traders split the CCI into three zones, namely:

1. the Overbought Zone
The value of the CCI which are considered saturated zone is when the value of the CCI is above 100. As with any other oscillator lines, after entering overbought zone graph then graph will go back down. Therefore this area was made the area SELL.

2. Central Zone
When the value is between the CCI Indicator-100 and 100 or situated in the middle of the movement of the market tend to be horizontal. So it is advisable to use trending strategy not to open position.

3. the Oversold Zone
If the indicator CCI entered the area below-100 then this means it has entered the zone of oversold. Therefore, the direction of the market tends to rise further.

In addition to measuring the saturation level is used as a price indicator Commodity channel index can also be used as a giver of signal entry. Here's how to use the CCI to find signal entry:

1. The Buy Signal is indicated when the CCI cut from below the 100-level, arguing that the price was just moving on from oversold zone, so that the direction of the next climb.

2. Sell Signal is indicated by the line level cut 100 of the CCI up, arguing the new prices left the oversold zone therefore the direction of next fall.

indicator CCI forex trading
Use CCI will be more effective on the bustling market conditions or in conditions of chaos where the buyer and seller and selling each other's attacks.

indicator CCI forex trading
On the conditions of a very strong trend indicator CCI is not functioning properly. Included on a quiet market but dominated by one party (the trend of slow).

indicator CCI forex trading
However generally signal a buy and sell signals generated CCI is accurate. To cover the lack of indicators this CCI can we pair it with other indicators.

That's the way using the CCI or the Commodity channel index in forex trading online, originally only for measuring the saturation can now be used to generate a signal entry. How to use the commodity channel index that more details will be discussed at the next technical analysis material. Hopefully helpful

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