CCM technical indicator is an oscillator represented by a histogram and a signal line.
The signal line is a moving average oscillating around the level 0 and that identifies the momentum. The histogram provides buy or sell signals.
The indicator calculates the difference between the higher high and lower low for a specified period in order to take market volatility into account.
- The histogram is positive, above the level 0 – green
- The histogram crosses upward the zero line and becomes positive – bullish trend
- Bullish divergence: the price falls down (higher high lower) and histogram is going up (new higher low). A upward correction of prices is expected.
- The histogram is negative, below level 0 – red
- The histogram crosses down the zero line and becomes negative – bearish trend
- Bearish divergence: the price is rising (new higher low) and histogram is going down (again above lower). A downward correction of prices is expected.
- File: CCM2.mq4
- Size: 6 Kb
- File: CCM3.mq4
- Size: 7 Kb