Introduction to the CCI Divergence Indicator
The CCI Divergence Indicator 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.
The CCI Divergence Indicator fits all kinds of timeframes and currency pairs. It is displayed both directly on the main chart and in a separate window placed just below it. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
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.
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.
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.
How to set up the CCI Divergence indicator in MetaTrader (MT5)?
Download the CCI Divergence.rar archive at the bottom of this post, unpack it, then copy and paste the CCI Divergence.ex5 or CCI Divergence.mq5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL5 > Indicators (paste here).
Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
Summary Of That Forex Indicator
The CCI Divergence indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it. Don’t forget that we still have more great free forex indicators to try.
Download Free Forex MT5 CCI Divergence Indicator
To download the CCI Divergence Indicator for Metatrader 5 (MT5) for free just click the button below: