Simple trading with CCI

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.
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).
Examples: 3 buy entry signals on the chart shown above. Bollinger Bands rising + CCI back above -100 from below.
Simple trading with CCI

Simple trading with CCI

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