Introduction to the Woodies CCI Arrows Oscillator Indicator
The Woodies CCI Arrows Oscillator Indicator is a forex momentum indicator that was originally developed by Ken Woods. As the name suggests, it’s based on a Commodity Channel Index (CCI) with a period set to 14. Due to its complexity, this forex indicator has multiple applications. One can utilize strategies like trading with the trend or against it, zero line rejection, reverse divergence, or the trendline break.
The Woodies CCI Arrows Oscillator Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. 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.
How does it work? How to apply in trading?
Trading Rules Explanation
The Woodies CCI Arrows Oscillator Indicator can be considered as a standalone and complete trading tool. It incorporates several elements including CCI, TurboCCI, Buy/Sell Arrows, EMA, LSMA, Histogram Bars. Upper and lower extreme gray zones are respectively overbought levels (value of 200 or more) and oversold levels (value of -200 or less). As you can see, the fact of having so many signals, it is rather a trading tool for advanced traders. Here are some (not all of them) signals provided by the Woodies CCI indicator.
During a strong trend in a particular direction, the CCI bounces off in an opposite direction and gets close to the zero-line. It is usually a signal of a trend reversal. but in this case, traders should make an entry based on the original trend direction.
Whenever there are peaks and troughs on the CCI making a straight line when connected and the straight line also points to zero, it is signal of a strong trend in the direction of the straight line.
When the CCI forms two peaks or troughs exactly on the same level it is a signal of potential new trade. When the horizontal trendline can be spotted above 0 level, you should be looking for a sell trade. Similarly, when it occurs below 0 level, you should be looking for a buy trade.
As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.
How to set up the Woodies CCI Arrows Oscillator indicator in MT4?
Download the Woodies CCI Arrows Oscillator.rar archive at the bottom of this post, unpack it, then copy and paste the Woodies CCI Arrows Oscillator.ex4 or Woodies CCI Arrows Oscillator.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 Woodies CCI Arrows Oscillator 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 MT4 indicators to download and try.
Download Free Forex MT4 Woodies CCI Arrows Oscillator Indicator
To download the Woodies CCI Arrows Oscillator Indicator for Metatrader 4 (MT4) for free just click the button below: