Last but not least, we also need to define where we take profits when trading with the Commodity Channel Index indicator. However, since the market will only occasionally give us such big trading opportunities we need to have a backup plan. As soon as the CCI indicator turns below the zero level, we want to exit our trade. The first sign that the rally is running out of steam is when the CCI indicator crosses below the zero line.

Use the same rules for a SELL trade — but in reverse. In the figure below, you can see an actual SELL trade example. The overarching principles of the CCI strategy can be applied to your own trading strategy as well. All markets move in cycles, so we recommend using the CCI indicator in combination with higher time frames as this will yield better trading performance according to our backtesting results.

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Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. This step-by-step guide will show you an easy way to trade with the MACD indicator. Get the free guide by entering your email now! Please log in again. The login page will open in a new tab.

After logging in you can close it and return to this page. Table of Contents hide. Or, sharp Corrections are bought at the closing price. Whichever happens first. Ana Karina Milhomem says:. June 7, at pm. Chakri Kumar says:. January 6, at am. Anuj gupta says:. Move your stop-loss step by step to lock your profit if you want to continue to follow the trend. Target Profit : sell you can close the trade when the 50 CCI going up from below level area to the above of the level. For long position, close the trade when 50 CCI going down from above level.

Share your opinion, can help everyone to understand the forex strategy. CCI Metatrader Indicator - Forex Strategies - Forex Resources txt Site map. Indicators: 34EMA DoubleCCI Entry : buy or sell at the break of the previous fractal swing.

The QQE is a mysterious indicator that sometimes pops up in trading forums. Does it deserve a place alongside the more traditional momentum indicators like the RSI and CCI? Bollinger Bands are great at detecting overbought and oversold conditions. Trailing stop losses are a popular feature in many trend following systems.

Bollinger Bands, the ever-popular technical indicator among retail traders, actually contain two inbuilt trailing stops. Are these any good? Hey there, Wayne here! Trading Tact is where I share my trading methods and insights. Get more trading ideas and strategy development tips delivered to your inbox! We keep your data private and share your data only with third parties that make this service possible. Read our full Privacy Policy. GREAT STRATEGY. ALSO, CAN THIS STRATEGY BE USED ON ALL CURRENCY PAIRS AND TIME FRAMES?

The strategy needs to suit the character of the market. In this case, your best bet is to trade a trending market on the higher timeframes. Your email address will not be published. Submit Comment. Have you noticed that forex weekend gaps usually reverse within 3 days? Should you increase your lot sizes for higher probability trades?

The Money Flow Index is sometimes called the volume-weighted RSI. Can it outperform the RSI in this trend following strategy? Are you a victim of excessive trade slippage?

Selecting a profitable entry is a critical step in strategy development. The Schaff Trend Cycle is a unique combination of the MACD and Stochastic indicators. The Kelly criterion is a famous mathematical formula that attempts to maximize your long-term capital growth.

Knowledge of intermarket correlations can improve your forex trading win rate. Here I explain three important types of correlations, and how you can use them to benefit your trading. Forex day trading seems to have a particular appeal to new traders.

Here I highlight five hidden challenges of day trading, and offer some suggestions on how to overcome them. Partial profit taking is a dilemma often faced by long-term trend followers.

Could this benefit your overall strategy performance? A catastrophic stop loss is a vital risk management tool for many traders. Get trading ideas and strategy development tips delivered to your inbox! Dual CCI Indicator Forex Trend Strategy Feb 19, The Commodity Channel Index CCI is an underrated momentum indicator that is often overshadowed by the RSI and MACD.

Submit by Maximo Trader Written by Ivan G. It is a trend continuation sort of trade and it considers 50CCI, 14CCI, and the ZL. It is a trend reversal sort of trade and it considers 50CCI, 14CCI, ZL and the 34EMA. It is the first ZL Rejection after a signal. This is the main trades he watches for and takes all day long. It works in any time, volume or tickframe but as stated before he is actually using a t chart.

If you clearly understand that this setup represents a serious pullback in a trending market, you will have for sure a better chance of trading it successfully. It will basically get you in a trade just when the pullback is over and the trend is ready to continue. What are the conditions for this setup to occur? Remember that if the 50CCI crosses down up through the ZL, as we will see later when explaining 5o34, the uptrend downtrend is probably over.

It does not have to be above below for any specific number of bars. As a matter of fact, it can just have crossed above below one bar ago to meet this condition. When to enter? This trade triggers when 14CCI comes back up down and crosses the ZL. Very often the real move begins at that point — when 14CCI crosses the ZL — so you are not missing much of the move by waiting.

If 14CCI turns back down up and crosses the ZL to the down up side, it is best to exit because you will have — almost for sure — a loser there. This is the main reason why we wait until 14CCI crosses the ZL before going long short.

This will keep us out of bad trades and drop us in right around the time that the up down move is about to continue. Instead, he waits for 14CCI to cross the ZL. Another setup DrBob created and uses is the In this case, the 50CCI crosses up down above below the ZL at around the same time that the price bar crosses and closes up down above below the 34EMA.

In other words, the 50CCI and the 34EMA are in agreement. Be this the time to say that 14CCI must be also above below the ZL. You will notice many times that a setup is the beginning of a new trend; almost every great move begins with a When do you enter this trade?

It triggers when 50CCI crosses and closes above below the ZL at the same time 14CCI is already above below the ZL and the last price bar is closing above below the 34EMA. In that case you want to go long short. The only and main problem we have with this setup is that sometimes it reverses back through the ZL a few times in a choppy way.

For trying to avoid choppy times DrBob has been filtering his signals with longer timeframes, looking at triangles forming on price bars — he does not take a signal if price is consolidating inside a triangle, please refer to Figure 2 and Figure 3 — and avoiding trading when 50CCI is stuck between the lines.

Also, many times you will go long short on a and shortly thereafter the 50CCI will cross back down up through the ZL and price will close below above the 34EMA. In this situation you can reverse your position and go short long or at least you can exit your trade to avoid a sure loser. When works, 50CCI will reach the line pretty quickly. Now, once 50CCI breaks that line it usually will move fast in the direction of your trade. Please refer to Targets and Exits for this subject on how to find stops and targets by keeping statistics.

If you do not want to work to hard or feel it is too risky to take the , take the first ZL Rejection, using the 14CCI, after that ; this is usually a high probability winner. For increasing odds even more, look for bounces from 34EMA when all these occur. It has been also said that it is even better when Z occurs at the same time a Slingshot dip below zero and return up above for longs and a Plateau Trade are occurring.

This is an extra piece of information this writer considers you may have but at the same time it is suggested you do your own research on that affirmation. These are then the 3 main setups DrBob takes.

However, he thinks it is still important for you to know about some other CCI setups that will help you understanding and trading better the setups already explained. Those setups are:. DrBob suggests that we all learn when the shamu usually occurs because it is a very powerful pattern and it leads to a strong move most of the time.

It is important to learn and understand when a ZLR could fail and turn into a Shamu. This is especially powerful when you have a 50CCI shamu at the same time the 14CCI is showing a ZLR or a bounce from the line. Normally, you would not take a line bounce, but if the 50CCI is forming a shamu, you may consider it as a trading opportunity. Consider this if you have been burned often taking ZLRs; Dr Bob prefers the dips and hooks at the as we mentioned earlier.

Please refer to Figure 8. Shamu after Ghost SAG — Change in Trend Trade. Many times after having a ghost, CCI will shamu and then fall out of bed. This happens both on the 14CCI and the 50CCI. Many times you may be tempted to trade a ZLR forming after a ghost. Wait, if you do not want to get burned, and better observe and try to anticipate if it turns instead into a shamu. Ghosts on 50CCI are just beautiful. Look for 50CCI Ghosts too.

You can use it as an actual entry signal or as an exit if you are already in a trade in the other direction since this is a high probability reversal signal. Be alert that when talking about stops and possible peaks, you have been only offered some examples.

For finding your own trading settings you need to do your own research and create your own database of statistics for the market s you are trading. DrBob keeps statistics on all the winning trades in the Russell.

A winning trade for him, while accumulating statistics, is one that provides a reasonable opportunity of profit based on visual evaluation of the charts. Also for the purposes of collecting and keeping statistics, the peak value is considered the highest lowest point of the move before 50CCI crosses back over the lines. He sets his targets off of that data.

He manages his third contract based on evaluation of the 50CCI above below the line. Exiting on a CCI signal TLB, Diver or CCI crossing back across the line is his drop dead exit. Many times, he will switch to a longer timeframe, like a 1,v, and wait for a divergence, a counter CCI signal or a cross.

But, this is only if you are trading a multi contracts position. As stated before, he uses a 6 tick stop on most of the markets he trades. When looking at his statistics spreadsheet for , he would have needed a 4. So, according to this fact, if it does not go against you over 5 ticks, it is probably going to be a winner. That is why he uses 6 ticks.

See PDF file. Share your opinion, can help everyone to understand the forex strategy. CCI Metatrader Indicator - Forex Strategies - Forex Resources txt Site map. Those setups are: Shamu DrBob suggests that we all learn when the shamu usually occurs because it is a very powerful pattern and it leads to a strong move most of the time.

Shamu after Ghost SAG — Change in Trend Trade Many times after having a ghost, CCI will shamu and then fall out of bed. Ghosts on 50CCI are just beautiful Look for 50CCI Ghosts too. Stops As stated before, he uses a 6 tick stop on most of the markets he trades. Comments: 0. Adobe Acrobat Document compressed file archive 1. CCI Forex Strategies. Privacy Policy Cookie Policy VAT Log out Edit. Follow us on Instagram.

POPULAR CATEGORY. We then place our stop loss order right above the most recent top. Based on this information, traders can assume further price movement and adjust this system accordingly. We use only the default values to keep things simple. Infoboard Indicator for MT4 December 17, If applied on the daily chart this would be days or if applied on a 1-hour chart, this would be the past 14 hours. CCI Indicartor MT4.

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