Seven CCI Binary System For MT4
The Seven CCI Binary System For MT4 is the perfect system that depends on multiple settings of the same tier of the indicator. The prominent indicators for a well-balanced binary trading system are CCI and EMA bands.
The reason for which we are calling it a band since we will be taking different period EMAs and CCI values to take our trade. So, why we are using multiple CCIs and EMAs in this method? EMAs are very reactive to price. And if you take the trade in a shorter time frame especially in the 15 minute or 30-minute chart, it becomes tough to get the actual scenario just by taking a look at the EMA.
But a bunch of EMAs smoothens up the flow of the price and it works like an averaging factor. The same principle is used for the CCI calculation. The position of the blue and purple CCI tells us which trades are valid and which trades are false. But for finding the position of the trade, we will be focusing on the blue and purple EMA bands.Lets explore the key steps to use this powerful classic trading system.
Call option setup
To take the call trade, we need to find the bullish reversal. Finding the bullish reversal is going to a simple issue since we will be using the EMAs. The purple color EMA will push above the blue EMA indicating there has been a shift in the momentum in the market.
Since we have multiple EMA bands of two different colors, it might take some time before you see a perfect cross of the purple EMA. Zoom into the chart and be sure that all the purple band is well above the blue EMA. If one single EMA is below the blue band, we don’t have the confirmation for the potential bottom.
The second step is to look at the CCI band reading. The purple line will be above the blue line. Both these lines should cross the 0 points to confirm the valid buy signal.
Unless it does, we can’t take the long trade. In real-life trading, the execution process is a bit hard as you have to wait for the setup. At times, it might take hours only to get one perfect cross in EMA and CCI. But without getting the confirmation, you should not take any trade.
Put option setup
To short the asset, we will be looking for the bearish reversal. The purple EMAs will cross below the blue EMAs confirming the shift in market momentum. When the momentum is bearish, we should see a bearish cross in the CCI curves.
After the CCI curves push below the 0 lines we can take our short trade with confidence. But there are some common mistakes while we use this trading method. First of all, we take early trade just at the moment when the cross is going to take place.
But such early decision results in poor trade execution. Zoom into the chart and see clearly if the bearish cross is perfect in place in both CCI and the EMAs. The rookies might be in great trouble with the waiting period associated with the perfect cross.
For them, it’s a must to trade in the simulation software for the first few weeks. It will help them to develop confidence in the trading method.
Advice for the rookies
The professional can use the Seven CCI Binary System For MT4 with great ease. But for the rookies, it might be a hectic system since they are not habituated with the reactive indicators. And in this method, we are using a bunch of reactive indicators that respond to the price change super-fast.
To offset the sensitivity of the EMAs, the recommended time frame for the rookies starts from the 1-hour chart. However, they can trade in minute charts after they feel confident with this approach. The expiry period for each trade is should be limited to 300 minutes. In case, you analyze the daily chart, you have made a bunch of changes to the trading method.
First of all, you must take a call trade when in a bearish retracement. Let's make it clear. Usually, the bullish break takes place with a long bullish candle. Instead of taking the trades at the next trade, you have to wait for the price to fall. The price will again test EMA bands and give you a second chance to take the trade.
With this simple tweak, you can tighten the stop loss for the trade. Since you will be using this method to execute options trades, the stake in each trade should be limited to 2% of your account balance. Increasing the state by winning a few trades in a row should not make you overconfident. Remember, a system that has a 90% win rate can face 10 series of losing trades. So, be well prepared to deal with the losses.
Download the complete system description and the files here: