CCI Arrows Indicator MT4 | MT5

The CCI Arrows indicator falls under the signals category of technical analysis indicators for MetaTrader charts, which leverages the CCI to generate buy and sell signals. 

- It displays upward arrows (blue) when the cci line crosses above the zero level, signaling a potential bullish movement.

- It plots downward arrows (red) when the cci line breaks below the zero level, signaling a potential bearish movement.

Furthermore, this simple indicator is a good technical tool for traders who choose simplicity over complexity in trading. It helps traders identify overbought and oversold market conditions and then spot potential trend reversals.

• Bullish reversal: In a downtrend, a long gap after the last red arrow indicates oversold conditions. A blue arrow confirms a potential uptrend reversal.
• Bearish reversal: In an uptrend, a long gap after the last upward arrow indicates overbought conditions. A downward arrow signals a potential downtrend reversal.

For more accuracy, traders could apply the CCI indicator alongside this indicator to filter out false signals and enhance trade decisions.

In the EURJPY trading example on MetaTrader 4, after the last blue arrow, a bullish momentum begins signaling a long opportunity. As the bullish remains dominant in the market, without any appearance of a red arrow indicated by the CCI Arrows, it suggests an overbought condition. The appearance of a downward arrow confirms the bearish reversal, signaling a selling opportunity.

In the USDCAD trading example on MetaTrader 5, a bearish momentum emerges after the last red arrow, signaling a selling opportunity. As the bearish still dominates in the market, and the indicator doesn't display any blue arrow, that expands the gap suggesting an oversold market condition. The appearance of an upward arrow confirms the bullish reversal, signaling a buying opportunity.