The All CCI Forex Alert trading strategy offers currency traders an effective trend based strategy that catches trends in their early stages.
The strategy starts off by scanning for the direction of the market by deploying the all CCI indicator.
Adhering to the rules of this strategy is quite easy since we are not searching for overbought or oversold market signals.
Now, before we go any further, we need to remind traders of the need to be disciplined when trading, as its absence can make a mess of even the very best trading system in the market.
For this, we’re going to examine the following buy and sell examples:
Chart Setup
MetaTrader4 Indicators: all-cci-indicator.ex4 (Inputs Variable Modified; CCIPeriod=28, barsPerTimeFrame=35000), half-trend.ex4 (Inputs Variable Amplitude=4)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week
Recommended Trading Sessions: Any
Currency Pairs: Any pair
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If the gold line of the all-cci-indicator break above the +100 signal level (see Fig. 1.0), the dominant market strength is to the upside, therefore a buy will suffice.
- If the line of the half-trend Metatrader 4 custom indicator turns deep sky blue, while positioning slightly below the candlesticks as depicted on Fig. 1.0, price is said to be driven higher, therefore a buy signal is in order.
Stop Loss for Buy Entry: Place stop loss 3 pips below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If the gold line of the all-cci-indicator falls below the zero center line while a bullish trend is running as exemplified on Fig. 1.0, bulls power is said to be weaning, hence an exit or take profit is recommended.
- If the half-trend custom indicator line color reverts to tomato during a bullish signal, price is said to be in a likely bearish reversal, hence an exit or take profit will suffice.
Sell Entry Rules
Go short if the following setups gets displayed successfully on the activity chart:
- If the gold line of the all-cci-indicator break below the -100 signal level (refer to Fig. 1.1), the prevailing market strength is to the downside i.e. a trigger to go short on the designated forex pair.
- If the line of the half-trend indicator turns tomato, while positioning somewhat above the price bars as illustrated on Fig. 1.1, price is said to be pushed lower, hence a trigger to go short on the forex pair of focus.
Stop Loss for Sell Entry: Place stop loss 3 pips above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the gold line of the all-cci-indicator surge above the the zero center line during the course of a sell signal, bears power is said to be halting, hence an exit or take profit is advised.
- If the half-trend custom indicator line color reverts to deep sky blue while a bearish signal is on course (check Fig. 1.1), price is said to be in a probable bullish reversal, hence an exit or take profit will do
Sell Trade Example
Fig. 1.1
Free Download
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About The Trading Indicators
The all-cci-indicator.ex4 is a technical tool that was initially created by Donald Lambert to spot cyclical trends in the commodity market.
The indicator can be used in the forex market and stock market without any problem.
The half-trend.ex4 custom indicator defines trend reversals within the currency market.