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Using CCI Breaks to Update Chart Support and Resistance Levels

Article MQL5 code base
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Summary

This indicator combines the Commodity Channel Index with support and resistance levels drawn on the price chart. It is intended to help traders relate indicator thresholds to visible price levels when judging possible entry or exit areas, rather than comparing the indicator and price only by eye.

The described process waits for the CCI to break a level, then checks whether to display a new trend line. If CCI remains in an overbought or oversold region, the displayed support or resistance level is adjusted; when CCI returns to the neutral region, updates stop and the indicator waits for another signal. The author characterizes the tool mainly as an aid for manual trading and says it is used like a standard CCI. No threshold values, formal price-level rules, examples with outcomes, or tests are supplied, so the description does not establish predictive value or define a complete automated strategy.

Key ideas

  • The indicator links CCI threshold breaks to support or resistance levels displayed on the price chart.
  • A break can prompt a check for a new trend line.
  • While CCI remains overbought or oversold, the displayed level is adjusted.
  • Returning to the neutral region cancels level updates until another signal occurs.
  • The tool is primarily described as a visual aid for manual trading, with no performance evidence provided.

Tags

Technical indicatorsMean reversionMomentum

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.