Woodies CCI Forex Trading Strategy

The market offers investors an array of trading opportunities, but mostly masked within the assets’ price action.

To effectively decipher the direction in which price is about to go with a somewhat high accuracy level, an effective trading strategy is needed – the Woodies CCI forex trading strategy is one of such.

Chart Setup

MetaTrader4 Indicators: Xma.ex4 (default setting), SuperTrend.ex4, WoodiesCCI.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Download the Woodies CCI Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Place buy orders in the market if the following indicator or chart pattern gets displayed:

  1. If the red line of the Xma.ex4 custom indicator intersects the deep sky blue line of the Super Trend indicator bottom up as shown on Fig. 1.0, the prevalent market sentiment is said to be bullish, hence buy position(s) should be entered.
  2. If the dim gray bars & deep sky blue line of the WoodiesCCI.ex4 custom indicator break and stays above the 0.00 level as depicted on Fig. 1.0, it is a trigger to buy the designated currency pair.

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If the red line of the Xma.ex4 custom indicator cuts through the deep sky blue line of the Super Trend indicator while a buy signal is ongoing, an exit or take profit is advised.
  2. If the dim gray bars & deep sky blue line of the WoodiesCCI.ex4 custom indicator readjust to break below the 0.00 level as seen on Fig. 1.0, it is signaling weaning bulls pressure, hence an exit or take profit will suffice.

Sell Entry Rules

Take up sell position(s) if the following holds true:

  1. If the red line of the Xma.ex4 custom indicator cuts through the deep sky blue line of the Super Trend indicator top downward as depicted on Fig. 1.1, price is said to be pressured higher i.e. a signal to buy the asset of choice.
  2. If the dim gray bars & deep sky blue line of the WoodiesCCI.ex4 custom indicator break and stays below the 0.00 level as portrayed on Fig. 1.1, a buy alert is said to be in the cards.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the red line of the Xma.ex4 custom indicator crosses the deep sky blue line of the Super Trend indicator while we still have sell positions in the market, an exit or take profit is recommended.
  2. If the dim gray bars & deep sky blue line of the WoodiesCCI.ex4 custom indicator realign to push above the 0.00 level as shown on Fig. 1.1, it is pointing weaning bears pressure, hence an exit or take profit will be sufficient.

Sell Trade Example

Fig. 1.1

Free Download

Download the Woodies CCI Forex Trading Strategy

About The Trading Indicators

The Super Trend indicator is a trend following and non-repainting custom indicator that is based on the CCI.

The Xma.ex4 indicator for MetaTrader4 is a Moving Average that contains a digital filter used in spotting trend along with flat states of the market.

The WoodiesCCI.ex4 is a momentum indicator that is based on a number of patterns made by the Commodity Channel Index (CCI) indicator.

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