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  1. #1
    Junior Member DAVEX's Avatar

    Meaning of the input value fo MT4 tools !!!

    Hi everyone,

    I'm trying to understand the meaning of the input value numbers referred to the various tools used in the MT4 platform:
    for instance when I use the CCI on the chart I see: "CCI (14)", when I use the Force Index: "Force(13)", the Stochastic Oscillator: (14,3,3) and so on..

    My main question is this: are these values related to time expiry?
    I mean, if I use a strategy that requires an expiry time of 5 minutes should I change all the values to 5? I tried to search on the web but it's very difficult to find an answer..

    Once again I thank in advance any suggestion or help,

    DAVEX

  2. #2
    Veteran Member Ronnel's Avatar
    Quote Originally Posted by DAVEX View Post
    Hi everyone,

    I'm trying to understand the meaning of the input value numbers referred to the various tools used in the MT4 platform:
    for instance when I use the CCI on the chart I see: "CCI (14)", when I use the Force Index: "Force(13)", the Stochastic Oscillator: (14,3,3) and so on..

    My main question is this: are these values related to time expiry?
    I mean, if I use a strategy that requires an expiry time of 5 minutes should I change all the values to 5? I tried to search on the web but it's very difficult to find an answer..

    Once again I thank in advance any suggestion or help,

    DAVEX
    Hi Davex,

    Please take what I write with a grain of salt since I'm still a newbie... For CCI, I use 21 for everything because it's easier to look at. 14 is also usable but 5 is too fast for me. Before I tested CCI 5 for M1 expiry and it worked well but 21 also did it's job well too. The thing is that I don't use indicator signals or crossover like stochastic crossover to enter a trade and just use indicators for overbought and oversold areas. I just use the candles to enter a trade. I think that those values are only related for entry and can't predict expiry. I predict expiry by counting candles from entry point to my target point. If you are going to use indicator signals to enter a trade then I think that the input value will really mean a lot.

  3. #3
    Junior Member DAVEX's Avatar
    Hi Ronnel,

    I'm developing a strategy that combines togheter CCI and Stochastic,still working on it but it seems to me that can give good results in the future. I'm experimenting several time expiry, I tried 2 minutes and 5 minutes but it's really to risky, that's why I was using CCI (5) and Stochastic (5,3,3). I start thinking that a 10 minutes time expiry is the right balance for me, I'll try to use 21 as value input as you suggested..

    Thanks a lot for your advice!!

    DAVEX

  4. #4
    Specialist Member marc's Avatar
    @DAVEX

    Actually historical price is the only information which is available ... so most indicators (if not all) use an average of price (with different calculation methods) ... and the time span (amount of candles) from which this average is calculated, is what you usually can change with the settings ...

    In regards of CCI: standard values are 14 or 20 ... but of course you are free to use any other value which works for you ...

  5. #5
    Junior Member DAVEX's Avatar
    Ok marc, I'll try standard values 14, 20 and 21 suggested by Ronnel.. I'll see what's best for me.
    Thanks!!

  6. #6
    Veteran Member Ronnel's Avatar
    Quote Originally Posted by DAVEX View Post
    Hi Ronnel,

    I'm developing a strategy that combines togheter CCI and Stochastic,still working on it but it seems to me that can give good results in the future. I'm experimenting several time expiry, I tried 2 minutes and 5 minutes but it's really to risky, that's why I was using CCI (5) and Stochastic (5,3,3). I start thinking that a 10 minutes time expiry is the right balance for me, I'll try to use 21 as value input as you suggested..

    Thanks a lot for your advice!!

    DAVEX
    I also played with CCI and Stochastic before and gave me good results. I also used Stochastic (5,3,3) but the reason why I stopped using CCI (5) is this...

    Click image for larger version. 

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    This is a CCI 5 chart that I used before but this didn't work well for me. CCI 5 gave me a guitar like S/R which is not for my style since I don't trade M1 and M5. It was chaos for my eyes and gave me lots of false S/R but it should work for very low expiry. Notice that Stochastic 5,3,3 is chaos with CCI 5


    Click image for larger version. 

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    This is CCI 21 which was my main chart before (CC1 14 is very similar so I didn't attach the photo...). CCI 21 is more easier to my eyes and also very close to Ichimoku Kinko Hyo's Chikou Span (A tool where you can easily and accurately plot S/R lines. CCI 14 and 21 are very good settings for medium TF. I use 21 for M1, M5, M15, everything and still gives me good readings. Adding Stochastic 5,3,3 also compliments CCI 21 and 14 so you wont have too many false readings.

    As of now I rarely use them both because I'm using a different strategy but when I'm in doubt, I always add CCI 21 on my chart. If you will be using CCI, I suggest that you also learn how to use it to spot divergence and fakeouts. Sometimes CCI will also give you hints if the candles would do a fakie and bounce back (angles). 21 worked well for me and I hope it will work well for you too.
    Last edited by Ronnel; 07-18-2015 at 01:28 PM.

  7. #7
    Junior Member DAVEX's Avatar
    I think CCI is an amazing tool and I really think that using it togheter with stochastic can help out a lot to place good trades.
    I also think that this last post of yours is amazing cause it will help me out a lot to understand how to use these tools in the best way possible!!

    Thanks a lot, I really appreciate it!!

    DAVEX

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