CCI Expert Advisor Setup - Setting Up Commodity Channel Index Expert Advisor

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

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

Commodity Channel Index (CCI) Technical Analysis and CCI Forex Trading 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 and 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.

Forex Commodity Channel Index Expert Advisor Setup

Technical 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 Signal

If the Commodity Channel Index is oversold, levels below -100, then there is a pending market correction.

The oversold levels will remain intact until CCI 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 trend line break signal to confirm the buy.

Buy Trade - Forex Commodity Channel Index Expert Advisor Setup

Sell Signal

If the Commodity Channel Index is overbought, levels above +100, then there is a pending market correction.

The overbought levels will remain intact until CCI 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 trend line break signal to confirm the sell.

Sell Trade - Forex Commodity Channel Index Expert Advisor Setup