MTF CCI Indicator

MTF CCI Indicator

The MTF CCI indicator finds overbought and oversold levels based on the CCI indicator.

The MTF CCI indicator, also known as the Multi-Time Commodity Channel Index indicator, is used to identify potential overbought and oversold conditions. The indicator is based on the Commodity Channel Index (CCI) developed by Donald Lambert.

The indicator takes the CCI concept one step further by including multiple timeframes in its calculations.

In this modified version, one line represents the CCI value, which is calculated from the difference between the typical price and its simple moving average.

How to use the MTF CCI Indicator for MT5?
The below EUR/USD M30 chart shows the indicator.

When the CCI line rises above the upper threshold (+400), this indicates a strong overbought market, indicating a bearish reversal.

On the other hand, when the CCI line falls below the lower threshold (-400), it indicates that the market is significantly oversold, signaling a bullish reversal.

You can also look for divergences, chart patterns, or use other indicators with this to reduce false signals.

Conclusion
The MTF CCI Indicator for MT5 uses multiple timeframes to provide a broader view of market momentum and trends. While the traditional CCI indicator fluctuates between -100 and +100, this indicator has a wider range of -400 to +400.