CCI Impulse Trading

CCI Impulse Trading is a trading system of trend-momentum based on the CCI (Commodity Channel Index).

The purpose of this strategy is to capture the first impulse of a movement.

This simple technique may achieve this goal of capturing the first impulse of movement.

This technique is suitable to have a goal of pre-determined price, since the ratio stop loss / profit is> 1, then it can be successfully applied in trading binary options high / low. Expiry time for Binary High/low is 3 candles).

Time Frame: 30 min or higher.

Financial market:any.

Indicators used:

CCI 14 period (close, with levels 0, 80, -80,).

50 EMA, Exponential moving Average, to determine the direction of the trend and trade.

Trading rules CCI Impulse Trading

Trades only in the direction of the trend.

Buy

Price close above EMA 50.

CCI crosses upward zero level.

Sell

Price close below EMA 50.

CCI crosses downward zero level.

Exit position when the CCI come back at 80 level (for buy) /-80 level (for sell) or with predetermined profit target that depends by currency pair, the time frame (example H1 Time Frame 20 pips USD/JPY, EUR/USD, AUD/USD, GBP/USD, NZD/USD ) and volatility of the market.
Initial stop loss 5 pips below/above of the entry bar after n..pips in gain for example H1 16 pips move stop loss at the breakeven.

Time Frame and  Profit for majors:

30 min 15 pips

H1 18-22 pips

H4 25-30 pips

Daily 80-120 pips

In the examples we shows the CCI Impulse Trading applied at the USD/JPY.

In the third example you see this strategy applied at the binary/options high/low.