The cci with arrow indicator for MetaTrader4 is a CCI based indicator which obviously can be used to spot new trends or notify of extreme conditions. The original Commodity Channel Index (CCI) was developed by Donald Lambert to gauge the difference between the price change of a symbol and its mean change in price.
When the cci with arrow indicator displays a high positive reading, it shows prices are above their average, a move that depicts strength. Price are said to be below their average when the cci_with_arrow indicator readings are negative, thus a display of weakness.
The cci with arrow indicator can be used as a matching or leading indicator. As a matching indicator, when it breaks above the +200 level (the ordinary CCI uses the +100 level for this), it reflects strong price movement which does imply an uptrend.
The cci_with_arrow indicator is modified to place a blue upward pointing arrow once this rule is achieved to further alert the trader of the imminent buy. Dips below the -200 level (the ordinary CCI implements the -100 level for this) reflects weakening price action and a strong signal for a sell.
The indicator forms a red downward pointing arrow once this rule is met, signaling a downtrend.
As a leading indicator, traders are able to draw up conclusions from the overbought and oversold conditions that it suggests a mean retreat.
The cci_with_arrow indicator can also be employed in determining bullish and bearish divergences, thereby posing as an alert tool to spot early shift in momentum and get ahead of reversal in trend.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (barheight, BarCount, showheightline, showarrowline, sound, usechart, period, per, price_type, pair), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: momentum oscillator