What Is The Most Accurate Forex Trading Strategy? It offers highly profitable and easy forex trading strategies with a strong sense of consistency. Investing in the direction of the price trend could be called this type of strategy. Traders must first discover the underlying trend direction, duration, and strength before taking action 4/4/ · # Forex Mastery Strategy; # Keltner Trend Reversal; # Super Stochastic DA TT MQ4; # Analytic Sar Indicator MQ4; # HMA Momentum Forex Strategy; # 26/5/ · This forex strategy uses only CCI (commodity channel index) with period You will be entering the trade based on indicator and candle signal. Exit is also indicated by CCI. The 19/2/ · An period CCI will be used for trend detection. We’ll throw in a 5-period CCI to detect short-term overbought/oversold conditions during pullbacks. In this context, the CCI is ... read more
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CCI Trading Strategies. Posted September 2, am By admin. Share on facebook. Share on twitter. Share on whatsapp. The Basics and Features of CCI The CCI indicator shows when the current price level is well above or below the moving average. This is a basic signal of the Commodity Channel Index. When the indicator line falls below the level and then crosses it in the opposite direction, a buy signal appears. Convergence and divergence orders are opened as follows: When at the moment of an uptrend the last local maximum is higher than the previous one the line connecting them goes up and the last extreme of the local indicator is lower than the previous one the line goes down , a sell order is opened.
When at the time of a downtrend the last low is lower than the previous one and the last low of the indicator is higher than the previous one, a buy order is opened. Each order must be protected with a set at a local endpoint or key price level. CCI Advantages and Disadvantages The Commodity Channels Index is a reliable and effective indicator, but it also has its downsides.
About the author. Prev Previous Day Trading Strategies — For Beginners To Advanced. Next Pivot Points Trading Strategy Next. Buy Trade Setup For CCI Swing Trading Strategy : Wait and watch for CCI value to go below oversold region and once it comes back and crosses above the line, you place a pending buy stop order pips above the high of the candlestick after it has closed.
Place you stop loss below the swing low or if the candlesticks is quite long, then place it anywhere from pips below the low of that candlestick. Your take profit target should be place at least more than 2 times the distance of what you risked. Place you stop loss at the swing high or if the candlestick is quite long, then place it pips above the high of that candlestick where you placed the sell stop order at.
Similarly, aim for profit targets 2 or more times what your risked or simply Risk:Reward Ration of or more. Did you enjoy this? It would mean the world to me if you shared it:. Posted in Simple Swing Strategies. Forex Swing Trading Strategy Daily Pin Bar Low Risk Entry Method ». Leave a Reply Click here to cancel reply. CCI FOREX TRADING STRATEGY RULES Refer to this chart below for clarity about the trading rules of the CCI forex strategy written further below: Buying Rules For The CCI Forex Trading Strategy: Watch and wait for CCI value to go below oversold region and once it comes back and crosses above the line to go up, you place a pending buy stop order pips above the high of the candlestick after it has closed.
Place you stop loss below the nearest swing low or if the candlesticks is quite long, then place it anywhere from pips below the low of that candlestick.
Your take profit target should be place at least more than 3 times what you risked. So say, if your stop loss is 30 pips then set your take profit at 90 pips. Then Place you stop loss at the nearest swing high or if the candlestick is quite long, then place it pips above the high of that candlestick where you placed the sell stop order at.
Some of the most experienced forex traders are constantly learning new techniques to help improve their trading knowledge and skills. Today we will talk about another useful oscillator — the Commodity Channel Index — CCI indicator. The Commodity Channel Index was created back in the s by the famous trader Donald Lambert.
The Commodity Channel Index CCI is calculated by determining the difference between the mean price of a security and the average of the means over the period chosen.
This difference is compared to the average difference over the time period. The Commodity Channel Index CCI belongs to the category of oscillators; it can predict price change and fluctuation within a specific trading range. The indicator is more suitable for working in the sideways channel, that is when there is no pronounced trend on the market, and the price is within a narrow range.
CCI demonstrates both the classical oscillator signals and other signals that were laid down by its creator. The advantage of such popular indicators is their availability. The Commodity Channel Index does not need to be downloaded or installed additionally. It is built into the base of classical instruments in accessible terminals like Metatrader 4 and 5, as well as in Live Chart.
Just select from the list and click OK to place on your chart. The algorithm is calculated on the basis of classical market laws. Namely — the cyclical nature of the market. Always a period of high prices is followed by a period of low prices, and so on.
And these periods cyclically replace each other. If you know this, then you can gain an edge when trying to anticipate future price movements.
Many famous traders and professional analysts for many decades talked about the cyclical nature of the market. This theory has been well known for years. Even the renowned theory of Elliott Waves is based on the undulating and cyclical movement of the market. Why is it so important to determine the cycles in the market? This will allow us to understand when a new trend begins, and when the old one ends. The CCI is a universal oscillator that equally demonstrates performance in the foreign exchange market, commodities, stocks, cryptocurrency, etc.
The market itself is not essential since the basis of the algorithm is the calculation of price fluctuations relative to the average value.
The author himself recommends using it in periods of 60 and 20 days. It was such time intervals that he set when he created it. Creator Donald Lambert himself recommended using the daily timeframe for analysis. This is natural since in the 80s of the last century there were no convenient modern terminals that broadcast every second online, where you can even set a 1-minute timeframe.
Everything was painted and calculated there, drawn by hand. The more you set the period in the settings, the smoother the line will be, but the less and fewer signals will come. But their quality can sometime be considered better than lower periods which may generate more false signals. It is able to work more precisely on the daily and hourly charts, as it was created specifically for such higher timeframes initially, and therefore took into account their features.
However, just like the rest of the oscillators, the CCI can be used for medium or long-term analysis. In the indicator window, you can simultaneously conduct graphical analysis, same as with RSI. In the classical sense, oscillators have overbought and oversold zones. CCI, in contrast to them, has several levels, and is slightly different, each of which has its purpose.
Visually, it is a separate scale, which is located under the graph like all classic oscillators. Most of the time, the price is midway between these critical levels. But sometimes it goes beyond its limits, thereby suggesting that the price may have reached overbought or oversold level. After all, the price cannot grow indefinitely. This should already be a signal to be ready that a moment of reversal will come soon.
It is similar with staying below the zone when the downtrend is exhausting itself, and you need to be prepared and expect a trend to reverse from downtrend to upward. The more you set the period, less trading signals will be there but more false ones will be filtered. The probability of false signals is always present, so you need to minimize risks as much as possible.
I would add additional technical, fundemental, price action and sentiment analysis to verify all CCI signals. By decreasing the period, the line becomes smoother. And thanks to this, the number of trading signals will increase.
But among them, there will likely be many false signals. Therefore, you need to configure the CCI settings according to your trading style or use additional indicators as additional filters. The primary type of trading signal that this indicator gives is the exit of the line into critical oversold and overbought zones. But to receive more accurate signals, professional traders recommend using additional indicators and to make combinations of them that grow into successful trading strategies, while supplemented by money management and basic rules for following the psychology of trading.
This means that the likelihood of an early trend reversal grows even more. The following key areas are from and and from to The indicator is already entering these zones at sharper price impulses, that is, during strong jerks.
Typically, such moments in the market are triggered by the release of important economic news and events, the start of an active European or American trading session after a sluggish Pacific and Asian.
These moments occur during discrepancies between the situation on the chart itself and the indicator. That is, the price is rising, and the CCI line is falling. And this is a robust signal that pros like. If this occurs on the market, it means that soon the price may unfold and move towards the direction of indicator. The commodity channel index CCI is an oscillator indicator that indicates overbought and oversold zones.
It primarily helps in determining the potential trend reversal. We can use this indicator in many ways in our trading. The most common ways are to identify the overbought and oversold zones and trade them or find divergence in the indicator.
However, it is strongly recommended to use other indicators as filters to increase odds of success. Pivot points work well with the CCI because both methods attempt to find turning points. Some traders also add moving averages into the mix. If you are looking to trade forex online, you will need an account with a forex broker. If you are looking for some inspiration, please feel free to browse my best forex brokers. I have spent many years testing and reviewing forex brokers.
IC Markets are my top choice as I find they have tight spreads, low commission fees, quick execution speeds and excellent customer support. If you are a fan of the CCI indicator, then you might want to take a look at the free CCI EA that I have developed. It can automatically analyse charts for buy and sell signals based on various CCI trading strategies. Self-confessed Forex Geek spending my days researching and testing everything forex related.
I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading!
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19/2/ · An period CCI will be used for trend detection. We’ll throw in a 5-period CCI to detect short-term overbought/oversold conditions during pullbacks. In this context, the CCI is What Is The Most Accurate Forex Trading Strategy? It offers highly profitable and easy forex trading strategies with a strong sense of consistency. Investing in the direction of the price trend could be called this type of strategy. Traders must first discover the underlying trend direction, duration, and strength before taking action 4/4/ · # Forex Mastery Strategy; # Keltner Trend Reversal; # Super Stochastic DA TT MQ4; # Analytic Sar Indicator MQ4; # HMA Momentum Forex Strategy; # 26/5/ · This forex strategy uses only CCI (commodity channel index) with period You will be entering the trade based on indicator and candle signal. Exit is also indicated by CCI. The ... read more
darrellgray yahoo. If this occurs on the market, it means that soon the price may unfold and move towards the direction of indicator. If you are looking to trade forex online, you will need an account with a forex broker. Creator Donald Lambert himself recommended using the daily timeframe for analysis. We also use third-party cookies that help us analyze and understand how you use this website. Refer to this chart below for clarity about the trading rules of the CCI forex strategy written further below:.
Everything was painted and calculated there, drawn by hand. Then Place you stop loss at the nearest swing high or if the candlestick is quite cci 26 forex trading strategy, then place it pips above the high of that candlestick where you placed the sell stop order at. It is built into the base of classical instruments in accessible terminals like Metatrader 4 and 5, as well as in Live Chart. This is a linear oscillator that sounds like it, but it has its own characteristics and advantages, cci 26 forex trading strategy. Are you a victim of excessive trade slippage? The commodity channel index CCI is an oscillator indicator that indicates overbought and oversold zones. Place you stop loss below the swing low or if the candlesticks is quite long, then place it anywhere from pips below the low of that candlestick.