Commodity Channel Index (CCI) is one of the popular oscillators widely used by traders to capture overbought and oversold areas of price action. Although the CCI indicator works fine for an interval of a market, it fails to generate profitable signals when market condition changes, and hence produces wrong signals which results in big losses.
Have you ever thought about an adaptive CCI indicator that adapts its period of calculation based on the market conditions? The presented indicator implements an optimization algorithm which identifies the best period for calculation of CCI based on maximization of the profit over N-past bars. You can imagine that the optimization process of the strategy tester of MetaTrader is continuously running on live charts to find the best CCI period, based on which the profit of trading on the CCI signals will be maximized.
- If CCI value crosses the level -100 upwards, it is assumed to be a buy signal.
- If CCI value crosses the level +100 downwards, it is assumed to be a sell signal.
- Automatically determies the best period of CCI to adapt to the current market conditions.
- Identifies overbought and oversold areas more accurately than original CCI indicator.
- Shows BUY/SELL signal arrows on the bar chart.
- Generates alerts for the signals.
- Highlights overbought and oversold areas with different colors for easier recognition.
- Generates reliable BUY/SELL signals on oversold/overbought areas.
- Works with 4 and 5 digits brokers.
- Maximum Bars to Look Back: A positive integer number that indicates the maximum past bars, over which the adaptive CCI values will be computed.
- Maximum Past Bars for Optimization: A positive integer number that indicates the maximum past bars, over which optimization (to find the best CCI period) will be performed.
- Minimum CCI Period for Optimization: A positive integer number (greater than zero) that indicates the minimum CCI period to take into account in the optimization.
- Maximum CCI Period for Optimization: A positive integer number that indicates the maximum CCI period to take into account in the optimization.
- Overbought Threshold: Default is 100.
- Oversold Threshold: Default is -100.
- Alert Enable/Disable: if true, the alerts will be triggered for the BUY/SELL signals.
- Email Notification?: If it sets to true, when a pattern is recognized, an email will be sent to the address set in the options of MetaTrader 4.
- Mobile Notification?: If it sets to true, when a pattern is recognized, the user will receive a push notification on his/her mobile phone.
- Show Signal Arrows?: if true, BUY/SELL arrows will be shown on the bar chart.
- Overbought Color: The color for highlighting overbought areas.
- Oversold Color: The color for highlighting oversold areas.
- Overbought & Oversold Line Width: Thickness of line for highlighting overbought and oversold areas.
- Applied Price: The type of price for calculation (the default selection is CLOSE price rate).
- Show Current CCI Period: If true, it displays the current optimized value of CCI period.
- Arrow Size: Default is 2.
- Oversold level is now available to be set by the user.
- Performance improvement.
- Overbought and Oversold levels are drawn by the indicator in different colors.
- Email Notifications
- Alert and signal arrows bugs fixed.
- Pops up an alert window when a BUY/SELL signal is generated.
- The user can enable/disable above features.
- Updated values for the input parameters.