How to trade with CCI – Commodity Channel Index.

Commodity Channel Index (CCI) created by Donald Lambert in 1980, for to analyze the cyclical of the market.
What are the uses of Commodity Channel Index ?
Indicate breakouts levels in trending market
To buy when the Commodity Channel Index moved above +100 and to sell when the Commodity Channel Index went below -100. Exit the trade or make profit once the Commodity Channel Index moved back within the -100 to +100 bands. The assumption is that when CCI breaks the levels 100 and -100 it has begun trend.

How to trade with CCI – Commodity Channel Index.

Range market trading with CCI
Sell signals are when the CCI moves from above +100 to below +100 and buy signals are when the CCI moves from below -100 to above -100.

How to trade with CCI – Commodity Channel Index.

Divergence trading with CCI
Bearish Divergence occurs when prices are making higher highs but the CCI is making lower highs. This is a sign that the up move is weakening.
Bullish Divergence occurs when prices are making lower lows but the CCI is making higher lows. This is a sign that the down move is weakening

How to trade with CCI – Commodity Channel Index.


Example trading CCI breakout strategy.
CCI breakout with martingala on daily chart.
Setup chart
Time frame daily,
CCI 5 period,, close.
Currency pairs: any.
Buy CCI> +100
SellCCI<-100
Profit target ratio 1:1 stop loss. In this example 40 profit target 40 pips and stop loss 40 pips.
Martingala with multiplier from 1.4 to 2.0. In this example is 2.0.
This is a demonstrative example to apply only on demo accounts to practice using the CCI. 
CCI breakout with martingala on daily chart.

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