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The Super Woodies CCI indicator is a trading algorithm whose job is to determine the strength and direction of the trend, which in turn also allows determining the moment of opening a trade. Its calculations are based on the use of the standard CCI forex indicator with an additional indicator. Super Woodies CCI is presented in the lower window of the price chart as a histogram with a signal line and a level of 0, as well as an additional trend line. Depending on the current market conditions, the indicator's histogram changes its color and direction, due to which the market movement is determined, and at the same time the opening of a trade.
The Super Woodies CCI indicator is suitable for trading on any timeframe using any currency pair.
Input parameters
There are several sections in the Super Woodies CCI indicator settings that are responsible for the overall functioning of the indicator. Thus, the Input parameter section is responsible for its technical operation, the Colors section for its visualization, and for adding signal levels to the indicator window, the Levels section.
-CCI Period - calculation period of the CCI indicator. The default value is 50.
-TCCI Period - TCCI indicator period. The default value is 10.
-price type or handle - type of price to which the indicator calculations are applied. Default value is Typical price.
-horizontal shift of the indicator in bars - horizontal deviation of the indicator values from the standard in bars. The default value is 0.
Indicator signals
The Super Woodies CCI indicator is very easy to use, since the algorithm of its application is similar to other histogram indicators. To open a certain tradeusing the indicator, it is needed to determine the strength and direction of the current trend. To do this, in turn, all indicator values are taken into account, namely the direction and color of the histogram with the signal line, as well as its intersection with the trend line. If the indicator determines an upward trend, buy trades are opened, if the trend is downward, sell trades. When the current trend weakens, trades are closed.
Signal for Buy trades:
- The histogram of the indicator is colored with the growth value and rises above the 0 level together with the signal line. The trend line is located above the 0 level.
Upon receipt of a combination of such conditions on a signal candle, a buy trade may be opened, due to the presence of an uptrend. At the moment of the trend weakening, the current trade should be closed. And at the moment of a trend change, consider opening a new one.
Signal for Sell trades:
- The indicator histogram bars have a color with a falling value and, like the signal line, are below the 0 level. The trend line is below the 0 level.
A sell trade, due to the presence of a downtrend, can be opened immediately upon receipt of such conditions on a signal candle. When receiving reverse conditions from the indicator, namely, when the current trend weakens, the trade should be closed. At the same time, at the moment of changing the direction of the trend, one should consider opening new trades.
Conclusion
The Super Woodies CCI indicator is a very powerful trading algorithm, as it is based on time-tested indicators. To improve the quality of trading, it is recommended not only to practice on a demo account, but also to use the indicator with additional indicators, filters and advisers.
