Simple trading with CCI
Simple trading with CCI is a
trend-momentum forex system based on Commodity channel index with
bollinger bands for swing trading.
Time frame 1H, 4H and daily
Currency pairs: any.
Trading Session: any.
Indicators:
CCI 14 period,
Bollinger Bands (20, 2).
Trading Rules Simple trading with CCI
Buy
Rules:
- Bollinger Bands going up (established bullish trend)
- CCI back above -100 from below (oversold market conditions)
Initiate
buy order at the open of the next bar. Place protective stop-loss 5
pips below the previous swing low price or use any other method you
prefer.
Profit target: (1) Close first half of the long trade at the upper Bollinger Band. (2) Close the remaining half of the position for risk-to-reward 1:2 or better.
Profit target: (1) Close first half of the long trade at the upper Bollinger Band. (2) Close the remaining half of the position for risk-to-reward 1:2 or better.
Sell
Rules:
- Bollinger Bands falling (established bearish trend)
- CCI back below +100 from above (overbought market conditions)
Initiate
sell order at the open of the next bar. Place protective stop-loss 5
pips above the previous swing high price or use any other method of
your preference.
Profit target:: (1) Close first half of the sell trade at the lower Bollinger Band. (2) Close the remaining half of the position for risk-to-reward 1:2 or better (i.e. risking 35 pips to make 70).
Profit target:: (1) Close first half of the sell trade at the lower Bollinger Band. (2) Close the remaining half of the position for risk-to-reward 1:2 or better (i.e. risking 35 pips to make 70).
Post a Comment