CCI Channel Trading Strategy plots the trend or momentum based trade signals in one of the most sophisticated way among other top class trading strategies. It has been designed to assist the trend loving traders with its complete strategically trading solution and also displays the current market trend condition in a very clear manner.
CCI Channel Trading Strategy is quite easier to follow. It uses its pivot levels as current support/resistances which ease the complexity of drawing horizontal lines manually every day. All you need to do is to understand the strategy and learning to use its combined indicators to detect potential trade opportunities during the market hours.
CCI Channel Trading Strategy Overview
After the installation process, when you load this system at your mt4 terminal, your trading chart should be look like the following image:
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CCI Channel Trading Strategy Anatomy
- 5 & 9 EMA: These are 5 and 9 day period Exponential Moving Averages. If 5 EMA crosses above the 9 EMA is considered as the bullish cross over. On the other hand, 9 EMA crosses above the 5 EMA level is interpreted as the bearish crossover.
- CC Cloud2: It look like the Ichimoku clouds. Price closes above the cloud signals the bullish trend and closes below the cloud is considered as the bearish trend. If the clouds expands or gets wider means the trend is getting strengthen up.
- CCI Arrow: These are signal arrows which points the possible direction of the upcoming trend. A downward arrow signals the bearish momentum and a upward arrow represents the bulls power in action.
- Pivot Levels: These horizontal lines represent the pivot levels and are used as current support or resistance levels. These levels are updated automatically so that you get relieved from drawing S/R levels manually each day.
- CCI Channel: It is a momentum based oscillator. The channel values rising above zero level indicates the bullish momentum and a falling trend with negative value signals the existence of bearish momentum respectively.
Recommended Strategy: CAP Channel Indicator
CCI Channel Trading Strategy: Buy Parameters
- 5 EMA Crosses above the 9 EMA level
- Price closes above the CC Cloud2
- CCI Arrow plots upward arrows
- Price is supported by pivot levels
- CCI Channel above zero level and in rising momentum
- Stop loss below the CC Cloud2 level
- Exit long whenever 5 EMA crosses below the 9 EMA level with a negative value of CCI Channel at the same time.
CCI Channel Trading Strategy: Sell Parameters
- 5 EMA Crosses below the 9 EMA level
- Price closes below the CC Cloud2
- CCI Arrow plots downward arrows
- Price is rejected from the pivot levels
- CCI Channel below zero level and in falling momentum
- Stop loss above the CC Cloud2 level
- Exit short whenever 5 EMA crosses above the 9 EMA level with a positive value of CCI Channel