Bringing The Sexy Back To CCI - MT4/MT5 Resources
In my humble opinion, trading has been difficult over the past two weeks. If you were able to accurately decipher price action so far in 2012 - kudos to you! I was so frustrated that I spent more time than a normal person trying to figure out a low-risk way to extract money from this crazy market.
Fast forward... I haven't used CCI in over 3 years, the only reason I started using it was because in an article/interview the best independent trader (Paul Rotter - PM me if you want a copy of that article) said he used CCI.
Well, I combined CCI with range bars and TMA bands and came up with a little system that should work on any currency pair, although I only tested EURUSD, GBPUSD and US Oil.
System overview
Trade with the trend and look for CCI divergences in the direction of the trend. I use TMA set to 144 to determine trend - only look for bullish divergence if price is above TMA TMA
Once you receive a divergence warning, wait for the price to extend beyond the TMA area in the opposite direction of the trend. If you see a bullish CCI divergence, you will want price to fall below the bottom of the TMA band. This is your signal to enter the long position. Most of the time, but not always, you will see the needle bar piercing the TMA band. I entered with a stop loss of 6 pips and set a target of 12 pips.
The chart above shows today's divergence trade. 1) Bullish divergence 2) PA above 144 TMA and 3) price falling below TMA lower limit.
Fast forward... I haven't used CCI in over 3 years, the only reason I started using it was because in an article/interview the best independent trader (Paul Rotter - PM me if you want a copy of that article) said he used CCI.
Well, I combined CCI with range bars and TMA bands and came up with a little system that should work on any currency pair, although I only tested EURUSD, GBPUSD and US Oil.
System overview
Trade with the trend and look for CCI divergences in the direction of the trend. I use TMA set to 144 to determine trend - only look for bullish divergence if price is above TMA TMA
Once you receive a divergence warning, wait for the price to extend beyond the TMA area in the opposite direction of the trend. If you see a bullish CCI divergence, you will want price to fall below the bottom of the TMA band. This is your signal to enter the long position. Most of the time, but not always, you will see the needle bar piercing the TMA band. I entered with a stop loss of 6 pips and set a target of 12 pips.
The chart above shows today's divergence trade. 1) Bullish divergence 2) PA above 144 TMA and 3) price falling below TMA lower limit.
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