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WPR with CCI is a special algorithm compiled on the basis of calculations of two technical indicators contained in a standard forex set. The indicator combines WPR, the task of which is to determine the state of oversold or overbought in the market, as well as to search for pivot points, as well as the CCI indicator, which analyzes the deviation of the price from the average value. And in combination with each other, these indicators create a mini strategy that serves to search for entry or exit points from the market after determining the current trend.
The indicator is presented in the lower window of the price chart as a solid line, which in turn, changing its direction, painting in one of three colors, while staying in the zone of upward or downward movement. This indicator can be used for long-term or short-term trading on any currency chart.
Input parameters
Despite the fact that the WPR with CCI indicator can be considered a small strategy, in its settings it has only three input parameters, which were combined into two. At the same time, the remaining parameters in the remaining sections of the settings are responsible for the colors and thickness of the indicator, as well as for adding additional levels to its window.
- WPR and CCI period - period of WPR and CCI indicators. The default value is 32.
- CCI price - price to which general indicator calculations will be applied. Default value is Typical price.
Indicator signals
A change in the color of the line, as well as its direction when staying in an uptrend or downtrend zone, can be considered as a signal of the WPR with CCI indicator. If these line parameters match, a certain position can be opened.If the indicator's line acquires a neutral connotation, in this case, all current trades should be closed, and in order to avoid losses, temporarily do not open new ones.
Signal for Buy trades:
- The indicator line should be in the uptrend zone.
- At the same time, it should go up, crossing the level line and be colored with the growth value.
After receiving such conditions, a long position can be opened on a certain candle. It should be closed after the line turns into a different color and exits the upward movement zone, as this indicates the end of the current trend and the beginning of a new one.
Signal for Sell trades:
- In the market, by staying in the line in the downtrend zone, the current trend is determined.
- The indicator line going through its level from top to bottom should be colored with the value of the fall.
After receiving such conditions, a sell trade can be opened, which should be closed after the line color changes, which exits the downtrend phase. At such a moment, it should be ready to open new trades.
Conclusion
The WPR with CCI indicator is very logical and therefore easy to use. At the same time, it shows very good results when used correctly, which is carried out taking into account all trading conditions, namely, correct money management, as well as long-term practice on a demo account before applying the indicator on real deposit.
