CCI Divergence Indicator
Platform: MT4 Type: Oscillator Last update: September 28, 2024The CCI Divergence Indicator for MT4 is, as the name suggests, a forex trading tool based on Commodity Channel Index that automatically recognizes hidden divergences between price and CCI. Detecting divergence manually is not an easy task. Luckily, the CCI divergence indicator gets the job done automatically, without hassle on the trader side. It provides solid reversal points and great market entry points for forex traders. Therefore, it makes it a great fit for divergence and reversal traders.
How to trade with the mt4 cci divergence indicator?
The lines of CCI Divergence Indicator are being displayed on the main trading chart, and CCI bars with buy/sell arrows and being displayed in a separate window below it. That gauge compares the price chart and the pivot value in the CCI. It also connects the tops and bottoms in the chart. A hidden bullish divergence takes place when the price chart shows higher lows, but the oscillator forms lower lows. Conversely, a hidden bearish divergence takes place when higher highs form on the oscillator, but the price makes lower highs.
Buy Signal
Follow these steps for a long trade:
- CCI Divergence provides an upward arrow
- Price swings higher from recent low swing
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last low point of the market
- Take profit or exit trade whenever the CCI Divergence provides opposite arrow or use your own method of trade exit
Sell Signal
Follow these steps for a short trade:
- CCI Divergence provides an upward arrow
- Price swings lower from recent high swing
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the last high point of the market
- Take profit or exit trade whenever the CCI Divergence provides opposite arrow or use your own method of trade exit
