The CCI Divergence Arrows Indicator for MT4 is a forex technical indicator that provides buy/sell arrows signals based on divergences between the price and Commodity Channel Index and it’s available to free download. These signals are a great base for trend-reversal trades.
Tired of trying to spot these divergences manually? That gauge can be your relief, so let’s take a closer look at it and bring some practical trading examples.
Introducing the CCI Divergence Arrows Indicator
MT4 Indicator Overview
The download link of the CCI Divergence Arrows MT4 indicator is placed at the bottom of this post. Once you’re done, your trading chart should look similar to the example below.
As you can see, the indicator is displayed in a separate window placed below the main trading chart. However, its trendlines are plotted both over candlesticks and the CCI oscillator line. Suggested entry points are simply marked with upward and downward arrows.
What Precisely are CCI Divergences?
To determine a CCI divergence one needs to connect two or more local lows/highs on the chart and the corresponding local lows/highs of the indicator’s CCI oscillator with a straight trendline.
There is a high probability of trend-momentum reversal when a price trendline leans towards a new direction and simultaneously oscillator’s trendline tilts in the opposite direction.
Bullish CCI Divergence
A bullish CCI Divergence scenario occurs when the two market price swings make two low points and the trendline connecting them points downwards. On the other hand, the CCI oscillator institute lower low and higher low points and the slope direction after connecting them is upwards. When these conditions are met, it is an opportunity for a buy trade.
Bearish CCI Divergence
A bearish CCI Divergence takes place if the last high point was higher than the previous one and the trendline connecting is directed upwards. Additionally, a similar trendline but oriented downwards should be defined after connecting high low points. When these conditions are met, it is an opportunity for a sell trade.
Obviously, you can customize the settings of that forex indicator, although there are not many options to customize. It includes the CCI period and whether to display CCI and price trendlines. What’s more, you can turn on/off the signal alert popup.
How to set up the CCI Divergence Arrows indicator in MetaTrader (MT4)?
Download the CCI Divergence Arrows.rar archive at the bottom of this post, unpack it, then copy and paste the Divergence_V1.1_CCI.ex4 or Divergence_V1.1_CCI.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The CCI Divergence Arrows indicator is an interesting forex indicator, however at the first glance, it may be a bit overwhelming by the number of signals on charts. One shouldn’t blindly follow all signals, but rather conduct further analysis on his own. Therefore, we rate its reliability as mediocre. It can be used as a standalone trading tool, but we suggest using it in conjunction with other technical analysis indicators or adding it to a forex strategy as a supplement.
Download Free CCI Divergence Arrows MT4 Indicator
To download the CCI Divergence Arrows Indicator for Metatrader 4 (MT4) for free just click the button below: