Timeframes: 15mins and above is better
Currency Pairs: Can be used for any pair.
Forex Indicator: only CCI with default settings.
The CCI indicator is an oscillator and it is used to determine overbought and oversold levels.
- You see price heading downto a support level and then you look at the CCI indicator to see if the market is in an oversold condition.
- If so there’s a likely chance that the market may bounce up from the support level and go up so look for a buy opportunity
- you buy trigger would be a bullish reversal candlestick.
- place a buy stop order 2-3 pips above the high of the candlestick
- place your stop loss 3-5 pips below the low of the candlestick.
- user previous swing highs as your take profit target level.
- if price is heading up to a resistance level, then look at the Commodity Chanel Index to see if the market is in an overbought condition.
- If so, there’s a great chance that the market may hit the resistance level and head back down.
- your sell trigger would be the formation of a bearish reversal candlestick pattern.
- Place a sell stop order 2-3 pips below the low of the candlestick
- place your stop loss anywhere from 3-5 pips above the high of that candlestick
- use previous swing lows as your take profit target levels.
So there you have it!
Please share this CCI Forex Trading Strategy With Support And Resistance Levels with your friends by clicking those sharing buttons below. Thankyou.