CCI EA Setup - Setting Up Commodity Channel Index Expert Advisor

Commodity Channel Index EA Setup - Setting Up CCI EA - A trader can come up with CCI EA based on the Commodity Channel Index (CCI) indicator explained below.

Commodity Channel Index (CCI) EA rules can be combined with other Forex technical indicators to come up with other Expert Advisor Forex Robots that trade using rules based on two or more indicators combined to form a trading system.

Commodity Channel Index (CCI) Forex Trading Technical Analysis & CCI Signals

Developed by Donald Lambert

The Commodity Channel Index measures the variation of a commodity price from its statistical mean/statistical average.

This indicator is an oscillator which oscillates between high levels & low levels

When the CCI is high it shows that price is unusually high compared to the its average.

When the CCI is low it shows that price is unusually low compared to the its average.

Commodity Channel Index EA Setup

Forex Analysis and Generating Signals

Overbought/ Oversold Levels

The CCI typically oscillates between ±100.

Indicator values above +100 indicate an overbought conditions and an impending market correction.

Indicator values below -100 indicate an oversold conditions and an impending market correction

Buy Trading Signal

If the Commodity Channel Index indicator is oversold, areas below -100, then there's a pending market correction.

Oversold areas will remain intact until Commodity Channel Index technical indicator starts to move above -100.

When price starts moving above -100 then that is interpreted as a buy.

The Commodity Channel buy signal should be combined with a trendline break signal to confirm the buy.

Buy Trade - Forex Commodity Channel Index EA Setup

Sell Signal

If the Commodity Channel Index is over bought, levels above +100, then there's a pending market correction.

The over bought areas will remain intact until CCI indicator starts to move below +100.

When price starts moving below +100 then that is a interpreted as sell.

This Commodity Channel sell signal should be combined with a trendline break signal to confirm the sell.

Sell Trade - Forex Commodity Channel Index EA Setup