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The CCI Hull indicator is a trading algorithm based on the general interaction of two indicators, namely the standard CCI indicator with an additional filter in the form of a modified version of the moving average. The indicator is used for trend trading, so its calculations are based on the definition of the current trend, namely its direction and strength. CCI Hull is displayed in the lower window of the price chart as a solid line, which changes color, direction and location relative to the signal level when a trend is detected. Thus, trades are opened taking into account the indicator values that determine the current trend.
The CCI Hull indicator can be used on any time frame with any currency pair.
Input parameters
The input parameters of the indicator are used to change the values of its technical work. At the same time, their values must match the selected currency pair or timeframe. To change the color scheme and general visualization of the indicator, the Colors section is used, and to add signal levels to the indicator window, the Levels section is used.
- CCI period - value of the period of the CCI indicator. The default value is 50.
- Hull period - Hull moving average period. The default value is 14.
- Hull divisor - Hull indicator divisor value. Default value is 2.0.
- Price - type of the price to which the indicator calculations are applied. By default, it has the Typical price value.
Indicator signals
The CCI Hull indicator is used to trade during a certain trend in the market. Thus, to open a trade, the direction and strength of the trend is determined first. To do this, several factors should be taken into account, namely the color of the line, its direction and location relative to the signal level. If the current trend the market is upward, long positions are opened, if the trend is downward, short positions are opened. When the trend direction changes, in both cases, trades are closed.
Signal for Buy trades:
- The indicator line goes up and has a color with a value of growth, located above level 0.
Upon receipt of such an indicator condition on a signal candle, a buy trade can be opened, due to the presence of an uptrend in the current market. Close the trade and consider opening new ones when the trend changes, namely, when the color and direction of the indicator line change.
Signal for Sell trades:
- The indicator has a color with a falling value and is heading down, below level 0.
A sell trade can be opened upon receipt of such a condition on a signal candle. At this moment, a downtrend is determined in the market. Upon receipt of the opposite conditions from the indicator, namely, when the direction or color of the line changes, the trade should be closed and opening new ones should be considered.
Conclusion
The CCI Hull indicator is a very efficient trading algorithm, the calculations of which are based on the general functioning of accurate forex indicators. The indicator is very easy to trade, so it is suitable even for beginners. To strengthen trading skills and use the indicator correctly, preliminary practice on a demo account is recommended.
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