CCI Divergence Indicator
Platform: MT5 Type: Pattern Last update: August 12, 2024The CCI Divergence Indicator for MT5 is a great tool for trend reversal recognition that often takes place after the divergence between price and Commodity Channel Index (CCI) happens. All the hassle is taken from traders, as that gauge recognizes the signals in a completely automatic way.
Closer look on the CCI Divergence Indicator
A divergence provides a potential solid turning point (reversal) in the market. However, finding these divergences manually is a vogue task and needs quite a lot of effort and experience. Good for us, the indicator does the job for us. On the other hand, using the CCI divergence as a standalone entry signal can be a bit risky sometimes. To improve the success rate one can try to combine it with price action and trend direction analysis.
Buy Signal
A bullish divergence is recognized when there is a blue line plotted on the chart and in the CCI window. What’s more, there is also an upward arrow put that you can take as a signal trigger. You can confirm the trade with some trend direction filter or a price action technical analysis.
Sell Signal
A bullish divergence is recognized when there is a red line plotted on the chart and in the CCI window. What’s more, there is also a downward arrow put that you can take as a signal trigger. You can confirm the trade with some trend direction filter or a price action technical analysis.
