The CCI Forex Trading Strategy With Support And Resistance Levels is very similar in some sense to the CCI Moving Average Forex Trading Strategy.
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!
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