Color CCI With JJN Been Forex Scalping Strategy For MT4
Table Of Contents:
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The Color CCI With JJN Been Forex Scalping Strategy for MT4 is a system for trading currencies on lower timeframe charts. It makes use of a couple of indicators with straightforward rules for identifying trading opportunities.
Those are the Color CCI and the JJN Been indicator. These two are non-standard MT4 tools, which means that you have to download and install them on the MT4 to start implementing this strategy.
And in this article, we provide you with an overview of those indicators as well as the sample trade setups of this system.
Let's begin.
Strategy Components
Here again are the two custom indicators:
- JJN Been Candl
- Color CC1 setting (14, -60, +60)
You can get the files for installing both by signing up below:
After downloading the two indicators, you just have to go through the usual installation process.
First, locate the Indicator folder and paste all the indicator files there. Here's how to find it:
- Click File on MT4
- Click Open Data Folder
- Open MQL4 folder > Indicators
Then, restart the MT4, and load up the Color CCI and the JJN Been indicator individually.
That’s it.
Now, let's take a closer look at those two indicators so you could make sense of why both are vital to this strategy.
JJN Been Candl
The JJN Been Candl is an indicator derived from the Average True Range, and its purpose here is to serve as the primary trading signal.
On the chart, you will find orange and yellow-green squares scattered all over. One candlestick can have both an orange and yellow-green square above and below it.
There are also red and green arrows that come with the squares, which will be the actual signal for placing a trade. The arrows point out the price level where a trade should be initiated.
Here's what it looks like:
Auto-generated Stop-loss and Take Profit Levels
You might be wondering what the yellow-green and orange squares are used for if the arrow alerts the entry. Well, if you look closely and hover your mouse over to each square, it actually registers a specific take profit and stop-loss price.
The yellow-green provides a specific price point for a take profit target, while the orange square offers a specific stop-loss.
Therefore, from this indicator alone, you can generate a trade signal with suggested price levels for managing your exit.
Color CCI
This indicator, the Color CCI, is a modified version of Donald Lambert's Commodity Channel Index. The standard CCI on the MT4, as you know, can be rather dull when applied to the chart, with its plain line oscillating between or beyond extreme levels.
By utilizing a histogram, the CCI becomes a lot more visual. Through histogram bars that change in color, it becomes easier to spot shifting momentum. And that is the main reason for developing this version of the CCI.
The Color CCI is, of course, analogous in function with the standard CCI.
Below is the Color CCI atop the CCI for comparison:
60 and -60
Typically, the CCI utilizes levels 100 and -100 to signal a trade. Whenever the reading moves past past 100, it indicates a buy signal and below -100 is a sell signal.
In the case of this custom indicator, the CCI level setting is changed to 60 and -60, thereby signaling a trade earlier. When the reading is above 60, the histogram bar changes into a green color and red when it's below -60. A yellow bar appears when the reading is in between.
Confirming a Trade
The system uses this indicator to confirm the setup identified by the JJN Been. So, if the JJN Been alerts a buy trade, the Color CCI should be green and not red or yellow. If the JJN Been signals a sell trade, the Color CCI should be red and not green or yellow. A yellow histogram bar doesn't confirm any trade for this system; it only suggests that the current reading is near the midpoint.
Color CCI With JJN Been Forex Scalping Strategy for MT4
Now, for this part, let's go through the system's rules:
Buy Trade:
- A green JJN Been arrow should appear below a candlestick, signifying the entry.
- The corresponding Color CCI histogram bar should be green.
- Stop-loss: Use the prescribed Stop-loss price of the JJN Been, which, in a buy trade, is the orange square below the candle.
- Take Profit: Use the prescribed Take Profit price of the JJN Been, which, in a buy trade, is the yellow-green square above the candle.
- The system is designed for scalping, so it's applicable to the 15-minute timeframe or lower.
Sell Trade:
- A red JJN Been arrow should appear above a candlestick, signifying the entry.
- The corresponding Color CCI histogram bar should be red.
- Stop-loss: Use the prescribed Stop-loss price of the JJN Been, which, in a sell trade, is the yellow-green square below the candle.
- Take Profit: Use the prescribed Take Profit price of the JJN Been, which, in a sell trade, is the orange square above the candle.
- You can use the 15-minute timeframe since this is a scalping trading strategy.
Example
Take a look at the example below. The green checkmark identifies the areas where a valid buy setup was identified.
- These areas are valid long setups because they match the buy trade parameters to a tee. The green JJN Been arrow is present and is confirmed by a green Color CCI histogram bar.
- You'll notice that there was a possible trade after the first valid entry, but since this wasn't supported by a green Color CCI histogram bar, no trades were taken.
- Upon placing a trade, the stop-loss was placed at the orange square. And as you can see, the trades in the image above produced successful results and never once hit any of the preset stop-loss. But this doesn't mean that it works a hundred percent of the time. That's why it's important to have the stop-loss order in place just in case.
- The take profit order is at the yellow-green square, and each target was hit just a few candles after the entry.
*The same thing applies in a sell trade buy in reverse.
Download the complete system description and the files here:
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