While CCI trading I discovered and created a simple yet powerful indicator that is the best way to define the trend I have ever seen. 14 years of trading taught me thatprice action is everything and using an indicator to trade with the trend is very helpful.
Here is how it works. The green bars above or the red bars below the zero line are the True Trend and show if the current trend is up or down. Any reading of the true trend above the zero line is positive and means an uptrend in the market while any reading below the zero line negative or a downtrending market.
The thin blue line is called the EntryCCI. We use this to show when price is overbought or oversold against the trend. We are looking for the EntryCCI to be puled away opposite to the trend to have a setup and then wait for price to resume back toward the current trend.
Here is the True Trend indicator settings for the inputs of the TrendCCI and EntryCCI periods:
Here are the settings I use on the color tab so that your True Trend can match mine including the blue EntryCCI:
Here is the download link for the True Trend indicator.
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- trend channel indicator mt4