Double CCI With SMA Indicator

Double CCI With SMA Indicator

The Double CCI with SMA is a technical trading tool based on commodity channel index and smooth moving average to give you an ideal trading signal.

The name is self-explanatory. The Double CCI with SMA consists of two commodity channel indexes and a simple moving average. It is a simple to use an indicator that gives easy to discern signals and boasts a high winning rate.

The indicator appears on a separate window below the price action. You can use it as a stand-alone trend indicator or combine it with other technical tools. It also works great together with price action trading methods.

Feel free to tweak the indicator parameters to enhance the signals and suit your trading method. You can use the indicator to trade any instrument in any time frame.

How to Trade Using the Indicator
As mentioned, using the indicator is a pretty much easy task. Simply download for free and run on the MT4 or trading platform.

It gives bearish signals by printing green bars on the chart while red bars give bearish signals.

Buy Signal
Buy when the bars change from orange-red to lime green. The indicator also moves above the zero line. Additionally, you can filter the signal when the entry CCI closes above the slow-moving trend CCI.

Sell Signal
The indicator gives a sell signal when the indicator changes from lime to red. The indicator should also cross above the zero line. Moreover, you’ll want to wait for the entry CCI to cross below the entry CCI.

Exit Strategy
You can set your stop loss below the recent swing low for long positions and several pips above the swing high for short orders. The price target should be near the latest area of interest or resistance and support levels.

Real Market Trading Example

The chart shows the behavior of the double CCI with SMA when mounted on Euro against the US Dollar chart.

The yellow line represents the entry CCI, while the black line shows the entry CCI. Notice how the entry CCI crosses above the trend CCI when the uptrend starts to gain pace. In addition, the indicator moves above the zero line, and the bars change from red-orange to lime green. This signifies a strong uptrend, and you should look to enter long positions.

The uptrend dwindles, and the indicator gives a bearish signal when the yellow line moves below the black line. However, you must patiently wait for the green bars to change color to red-orange before open sell trades.

Conclusion
The double CCi with SMA indicator combines multiple technical tools to give you refined trade entry signals. You simply need to enter when the indicator bars change color and cross the zero line. The crossover filters the signals to boost winning probability. It is an indicator you should have to reduce heavy losses and boost profitability.