CCI MA X2 Smoothed MTF Indicator
MT4A two-in-one indicator combines CCI and MA to enable investors to trade with the trend.
Description
The CCI ma x2 smoothed MTF design and functionality is well elaborated on in the name. As it implies, the technical tool combines the Channel Commodity Index (CCI) and moving averages (MA). Each technical indicator has two lines. This means that this indicator has four lines.
The CCI has two green lines while the other two lines represent the moving averages. The moving average shows the price direction while the CCI gives the sell and buy signal.
You can use the indicator as a standalone indicator. And as the indicator names show, it is a multi-timeframe indicator meaning you can use it on all time frames.
CCI MA X2 Smoothed MTF Trading Signals
The indicator has two inbuilt indicators, which means that they reinforce each other to establish confluence. Essentially, the white line represents the moving average and forms a channel that shows the general trend.
The green lines, on the other hand, represent the commodity channel index.
Buy and Sell Signal
A buy signal occurs when the white lines move upwards. The green lines must be within the white lines. Enter a bullish position when the price touches the lower channel band.
Short signals occur when the trend of the white line is downwards. The white lines should be enclosed inside the green lines. Simply sell when the price action touches the upper band.
CCI MA X2 Smoothed MTF Real Trading Example
The chart shows the price movement for the Us Dollar against the Canadian dollar in a four hour time frame.
The indicator gives a buy sign when the white line changes directions and trends upwards. Note the white line encloses the green lines.
A suitable buy signal occurs when the price action touches the lower green band. A suitable entry point was immediately after the candles closed after the signals.
Currently, the currency pair is bearish. A sell signal is provided by downwards-slanting white lines within the green lines. Once the price touches the upper green line, be ready to open a short position at the close of the candle.
Conclusion
The CCI ma x2 smoothed MTF is an indicator that combines both the Commodity Channel index and the moving average. It gives accurate and straightforward signals using channel bands. It is an excellent indicator to add to your trend-following tools.
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