Commodity Channel Index Oscillator (CCI) Download MT4 - Free [TFlab]

The Commodity Channel Index (CCI) Indicator is a popular technical analysis tool in financial markets, especially in Forex and Stock markets, and is recognized in Meta Trader 4.

Donald Lambert designed this indicator measures the deviation of the price from its moving average, helping traders identify entry and exit points and analyze overbought and oversold conditions.

Indicator Specifications Table

Uptrend Condition

The 30-minute EUR/USD price chart shows the functionality of the CCI Indicator in an uptrend. Generally, when the blue line (CCI) penetrates levels above +100, it indicates the strength of the uptrend.

To assess the sustainability of the uptrend, the CCI should consistently stay above the +50 range.

One of the key features of the CCI Indicator is its ability to detect divergence; if the price continues to rise but the CCI starts to decline, this divergence can be a warning of weakening upward momentum.

Downtrend Condition

The 1-hour Binance Coin's (BNB) price chart shows how the CCI Indicator functions in a downtrend. When the blue line (CCI) penetrates levels below -100, it indicates the strength of the downtrend.

To assess the sustainability of the downtrend, the "CCI" should consistently stay below the -50 range. The image shows a divergence between price movement and the "CCI" oscillation, where the price is decreasing, but the "CCI" oscillations register higher points.

This divergence can be a warning of weakening downward momentum.

Settings

• Turbo CCI Period (T CCI Period): The period for "Turbo CCI" is set to 7;
• CCI Period: The timeframe for calculating the Commodity Channel Index (CCI) is set to 13;
• Overbought/Oversold Level (Over BS Level): The overbought and oversold level is 200;
• Trigger Level: The trigger level is set to 50;
• Weight: The period for overall calculations is set to 1.

Conclusion

The Commodity Channel Index (CCI) Indicator is used to identify trends and entry and exit points in financial markets.

Calculating the difference between the average price and the Simple Moving Average (SMA) allows analysts to identify overbought and oversold points and examine price volatility.