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Sunday, 02 October 2022
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cci-divergence

cci-divergence

Watch the testing video here:

CCI Divergence Indicator

 

The CCI Divergence Indicator is, as the name suggests, a forex trading tool based on Commodity Channel Index that automatically recognizes hidden divergences between price and CCI. Detecting divergence manually is not an easy task. Luckily, the CCI divergence indicator gets the job done automatically, without hassle on the trader side. It provides solid reversal points and great market entry points for forex traders. Therefore, it makes it a great fit for divergence and reversal traders.

The CCI Divergence Indicator fits all kinds of timeframes and currency pairs. It is displayed directly on 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 CCI Divergence Indicator divergence lines are being displayed on the main trading chart, and CCI bars with buy/sell arrows and being displayed in a separate window below it. That gauge compares the price chart and the pivot value in the CCI. It also connects the tops and bottoms in the chart. A hidden bullish divergence takes place when the price chart shows higher lows, but the oscillator forms lower lows. Conversely, a hidden bearish divergence takes place when higher highs form on the oscillator, but the price makes lower highs.

Buy Signal

Follow these steps for a long trade:

  • CCI Divergence provides an upward arrow
  • Price swings higher from recent low swing
  • Buy trade is triggered after the above conditions are met
  • Set stop loss a few pips below the last low point of the market
  • Take profit or exit trade whenever the CCI Divergence provides opposite arrow or use your own method of trade exit

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