Simple trading with CCI

The Commodity Channel Index (CCI) is one of the default MT4 indicators created by Donald Lambert. At first, these indicators are used to analyze commodity price index. However, as time went on, this indicator can be used as a reference for analyzing the prices of currency or stocks. The Commodity Channel Index (CCI) is already much help traders determine the exact position, because of the open nature of this indicator can indicate overbought levels and oversold.

The Commodity Channel Index (CCI) is one indicator of the oscillator lines. As a function of the other oscillator lines indicator, this indicator can indicate overbought levels and oversold. Indicator Commodity Channel Index (CCI) comprising the line of the curve which shows the movement of the market price, and the levels as overbought and oversold areas of the pointer. Level + 100 as overbought and area level pointer – pointer 100 as oversold area. The levels that should be our focus when using the indicator Commodity Channel Index (CCI) to analyze the market. Consider the following image:

On MT4 indicator Commodity Channel Index (CCI) is already installed with the default IE settings from 14. Actually, we can change the parameters that correspond to our desires, but we should just use the default settings, the default settings because it seems quite accurate when determining the overbought and oversold areas. To bring up the indicator Commodity Channel Index (CCI) in MT4 way:

• Select the icon list indicator (green plus sign) in MT4
• A dialog box will appear
• Select the oscillator then the Commodity Channel Index 

If it is successful the display will appear the indicator Commodity Channel Index (CCI) like this:

Then, how do I open positions?

Note the picture below:

Open to Buy

• If the price had been oversold area (level – 100) then cross the level – 100 from bottom to top. 
• Remember, open buy when price crossed over to the top. If the price has not yet crossed the 100 level – then wait until prices start to move up.

  Open to Sell

• If the price had been oversold area (level + 100) then cross the 100 + levels from top to bottom. 
• Remember the sell open when price crossed downwards. If the price has not yet crossed the level of + 100 then wait until prices start to move down. 

Attention:

• Not all positions or overbought area prices in the oversold it valid. Attempting to meticulously observe the chart. While prices have reached overbought or oversold area turns out not all the turning direction. 
• Therefore, in the use of this CCI should pay attention to the TREND. We should pay attention to the movement of the trend. 
• If the trend is generally bullish, then open position just when prices are already at level – 100 (oversold)
• If the generally bearish trend, then open position just when prices are already at level + 100 (overbought).