The Recursive CCI Trading Indicator for MT5

Recursive CCI is a modification version of the standard forex CCI indicator. This trading algorithm is designed to determine the current trend and trade during its active, that is, strong phase. It is represented in the lower window of the price chart in the form of four lines: three signal and one base, which, depending on the direction of the current trend, is painted in a certain color. All lines move in a certain direction and cross each other. All indicative factors of the indicator are the main determinants of the direction of the current market trend.

The Recursive CCI indicator is suitable for trading on any timeframe using any currency pairs.

Input parameters

The input parameters of the Recursive CCI indicator are very advanced. This allows simplifying and customizing the indicator for own trading. In addition, the Colors section in its settings serves to change the color scheme of its values, and the Levels section to add signal levels to the indicator window.

• Timeframe - timeframe used for trading. The default value is Current.

• CCI calculating period - calculation period of the CCI indicator. The default value is 50.

• Price - type of the price at which the indicator is calculated. The default value is Close price.

• CCI level - value of the level of the CCI indicator. The default value is 1.

• Price smoothing - indicator price smoothing value. The default value is 5.

• Price smoothing method - the type of smoothing of the indicator's calculations. By default, it is set to Simple moving average.

• Levels period(<0 no levels,0 same as CCI period) - period for calculating indicator levels. The default value is 25.

• Levels up level% - value of the upper signal level of the indicator. The default value is 90.

• Levels down level % - value of the lower level of the indicator. The default value is 10.

• Levels type - type of indicator levels. Default value is floating levels.

• Color change on: - parameter responsible for the moment when the color of the main line of the indicator changes. The default value is Change color on outer levels cross.

• Turn alerts on? - a parameter responsible for turning on alert notifications. The default value is false.

• Alert on current bar? - parameter responsible for generating a notification on the current bar. By default, it is set to true.

• Send messages on alerts: - parameter responsible for sending a message to the price chart window when a signal is received. The default value is true.

• Play sound on alerts? - Sound notification option. The default value is false.

• Send email on alerts? - parameter responsible for the alert in the form of an email. The default value is false.

• Send push notification on alerts? - parameter responsible for push notification when an alert is received. The default value is false.

• Interpolate in multi time frame mod - parameter responsible for switching the indicator for multi-time frame trading. Default value is true

Indicator signals

The algorithm for applying the Recursive CCI indicator in practice is very simple. But it is important that all factors of the indicator should be taken into account when trading. For example, the color of the main line, the intersection with the signal lines and their location, as well as their general direction. And if the conditions characterizing an upward market trend match on a certain candle, buy trades are opened, if the trend is down, sell trades. It is important that the trades are confirmed by indicator signals. In both cases, trades are closed at the moment the current market direction changes.

Signal for Buy trades:

• The indicator lines move up after crossing. The main line is above the signal lines and has color with a growth value.

Upon receipt of a combination of such conditions, on a candle confirmed by a signal, a buy trade can be opened, due to the presence of an uptrend in the current market. The trade should be closed when the current trend changes, namely after coloring its main line in a different color or at the next intersection of the indicator lines. This moment will allow considering the opening of new trades.

Signal for Sell trades:

• The indicator lines should move down, while the main line, which has a color with a falling value, should be below the signal ones.

A sell trade can be opened immediately upon receipt of a signal from the indicator. At this moment, a downtrend is determined in the market. A trade should be closed when the trend direction changes, namely when the indicator lines cross or the main color changes. At this moment, it can be considered opening new trades.

Conclusion

The Recursive CCI indicator is a very effective and accurate trading indicator, thanks to which it is very easy to determine the current trend and trade during this period. There are a lot of input parameters in the indicator settings, the values of which really affect its overall operation, so it should be experimented with changing them through preliminary practice on a demo account, which will really help to strengthen trading skills and use the indicator correctly.

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