The Bollinger Bands with Commodity Channel Index (CCI) system is based on a combination of Bollinger Bands, the CCI Oscillator and a simple moving average.
It’s an easy method that keeps you on the right side of the trend. It can be applied to all currency pairs.
Setup strategy
Time Frame 15 minutes or higher,
currency pairs any.
Indicators
Bollinger Bands (20 period, deviation 2.0),
3 period Simple, Moving Average,
Commodity Channel Index 50 periods, close).
To eliminate some false signals, a trend filter is added, a simple moving average of 150 periods.
Trading Rules
Buy
Price above 150 simple moving average.
Open long trade when the red line (simple moving average) trades above the middle Bollinger Band + CCI indicator turns above the 55 line.
The candle above the simple moving average.
Preferred stop for buy trade: below most recent support.
Preferred target for buy trade: Stop x 2 or better (for example risk: 20 pips, target: 40 pips)
Sell
Price below 150 simple moving average.
Open short trade when the red line (simple moving average) trades below the middle Bollinger Band + CCI indicator turns below the -55 line.
The candle below the simple moving average.
Preferred stop for sell trade: Above most recent resistance
Preferred target for sell trade: Stop x 2 or better (for example risk: 50 pips, target: 100 pips).
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