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The STD Based CCI indicator is a trading algorithm whose calculations are aimed at trading during a certain trend. Thus, the indicator determines the presence of a trend, as well as its current direction and strength, which in turn is taken into account when opening a trade. The indicator is displayed in the lower window a price chart in the form of a solid line that changes its color, direction and location relative to the signal level under certain market conditions. Thus, the indicator determines the current trend, and at the same time the moment of opening a position in this period.
The STD Based CCI indicator is suitable for trading any currency pairs, on any timeframe.
Input parameters
There are several sections in the settings of the STD Based CCI indicator, each of which affects its general functioning. So, the Input parameters section is responsible for its technical work, the Colors section is responsible for its general visualization, and to add signal levels to the indicator window, the Levels section is used.
-Period - indicator calculation period. The default value is 50.
-Smoothing period (<=1 for no smoothing) - the period for smoothing the indicator values. The default value is 0. If the value <=1 is selected, smoothing is not used.
-Price - type of the price to which the indicator calculations are applied. By default, it has the Typical price value.
-Calculation method - the type of calculation to use. The default value is Use standard deviation for calculation.
-Color changing method - parameter responsible for the indicator color change period. By default, it has the Change color on zero cross value.
Indicator signals
The STD Based CCI indicator is very easy to use due to its convenient visualization. To open a certain trade,it should be taken into account the current trend. For this, in turn, it should be taken into account the direction, color and location of the line relative to the signal level. If the current market trend is upward, long positions are opened, if the trend is downward, short positions. When the trend changes, in both cases, trades are closed. In the absence of a trend, trades are not opened at all.
Signal for Buy trades:
- The indicator line is directed upwards and rises above level 0 and has a color with a growth value.
Upon receipt of such conditions on a signal candle, a buy trade may be opened, due to the presence of an uptrend. The trade should be closed when the color and direction of the line change. At this moment, a change in the current one is possible, which will allow considering the opening of new trades.
Signal for Sell trades:
- The indicator line has a color with a falling value and moves down, falling below level 0.
A sell trade, determined by the presence of a downtrend, can be opened immediately upon receipt of such conditions. The current trade should be closed and a new one should be considered when the current trend changes, that is when the current trend changes.
Conclusion
The STD Based CCI indicator is a very effective trading algorithm since its calculations are based on the functioning of time-tested indicators. In order to gain the necessary trading skills and use the indicator correctly, practice on a demo account is recommended.
