CCI Trend Strategy For MT4

CCI Trend Strategy For MT4

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 CCI Trend Strategy For MT4 is designed to trade in all currency pairs. But according to the inventor of this strategy, the rookie traders should use this system to trade the major currency pairs only. By limiting the number of assets, the trading process becomes a bit easier. So, start using this system to trade the stable pairs only as it will make you feel more comfortable.


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The CCI Trend Strategy For MT4

For this trading strategy, the indicator is the Commodity Channel Index (CCI), which is used to define the overbought and oversold zone.

CCI is a momentum-based trading indicator that shows the price direction in a separate box with dynamic lines.

The main functions of the CCI indicator are mentioned below:

  1. CCI provides a dynamic range for a specific trading instrument.
  2. If the signal line in the CCI indicator move above the zero lines, the overall trend is bullish.
  3. If the signal line in the CCI indicator move below the zero lines, the overall trend is bearish.
  4. If the CCI reading is below -100, we have a strong downtrend.
  5. If the CCI reading is above +100, we have a strong bullish trend.



The new trader might have some trouble with the CCI functions. We recommend them to use the demo account learn its functions properly.

 

Let's have a look at the key indicators used in this strategy.

  • Exponential Moving Average (EMA)- value 40
  • Exponential Moving Average (EMA)- value 80
  • Commodity Channel Index (CCI)- value 21



The chart above shows how the EMA and CCI are used in this strategy.

Why EMA's are used in this Trading Strategy?

The Exponential Moving Average (EMA) helps us to identify the direction of the trend. By seeing the change in the slope, we can identify the key point of reversal in the market.

 

In general, if the price move above the EMA, we expect a bullish rally. On the contrary, if the price moves below the CCI, we expect a bearish rally.

 

CCI Trend Strategy For MT4 - Bullish Trade Setup

 

 

While using this strategy, it would be better for us to look at the trading signals by analyzing the trading session. By taking the trades during the active trading session, we can take advantage of the volatile state of the market. Now let's have a look at the requisite conditions for a long trade setup.

Bullish Trade Conditions

  • Price should be trading above the EMA 80.
  • EMA 40 should be above the EMA 80
  • CCI reading should be above the zero lines.



Entry

After checking these conditions, we can open our long trade. But we should not expect that we will definitely win money from this trade. That's why we need to use a stop loss.

Stop Loss

 

According to the inventor of this system, the SL points vary depending on the charts.

  • 5 minutes to 10 minutes chart- 10 to 15 pips
  • 15 minutes chart- 10 to 20 pips
  • 30 minutes chart- 15 to 25 pips
  • 1 Hour chart- 30 to 35 pips
  • 4 Hour chart- 30 to 50 pips
  • Daily chart- 50 to 150 pips

The above SL points should be considered as a reference point to determine the maximum loss. You can use your own technique or use the price action signals to find reliable SL prices.

 

Take Profit

According to the inventor of this system, the TP levels also vary depending on the charts.

  • 5 minutes to 10 minutes chart- 30 to 50 pips
  • 15 minutes chart- 30 to 60 pips
  • 30 minutes chart- 50 to 80 pips
  • 1 Hour chart- 100 to 150 pips
  • 4 Hour chart- 100 to 150 pips
  • Daily chart- 150 to 500 pips.

The above TP points should be considered as a reference point to determine the take profit level. You can also use your own technique or use the price action signals to find a reliable take-profit zone.

 

CCI Trend Strategy For MT4 - Bearish Trade Setup

 

The bearish trade setup process is very similar to the long trade setup. Let's move into the details

Bullish Trade Conditions

  • Price should be trading below the EMA 80.
  • EMA 40 should be below the EMA 80
  • CCI reading should be below the zero lines.



Entry

After checking the necessary details, we can take our short trade with low-risk exposure.

Stop Loss

According to the inventor of this system, the SL levels vary depending on the time frame.

  • 5 minutes to 10 minutes chart- 10 to 15 pips
  • 15 minutes chart- 10 to 20 pips
  • 30 minutes chart- 15 to 25 pips
  • 1 Hour chart- 30 to 35 pips
  • 4 Hour chart- 30 to 50 pips
  • Daily chart- 50 to 150 pips

 

Take Profit

According to the inventor of this system, the TP levels also vary depending on the time frame.

  • 5 minutes to 10 minutes chart- 30 to 50 pips
  • 15 minutes chart- 30 to 60 pips
  • 30 minutes chart- 50 to 80 pips
  • 1 Hour chart- 100 to 150 pips
  • 4 Hour chart- 100 to 150 pips
  • Daily chart- 150 to 500 pips.

 

CCI Trend Strategy For MT4 - Conclusion

 

This trading method is provide a simple way to find the potential long and short trade setup. But the simple steps might seem hard to the rookies. That's why the developer of this system strongly suggests using a demo account. With the help of a demo trading account, a trader can know the functions of this system without taking any risk.

Note that, no system in the Forex market is going to provide 100% accurate trade signals. So, to protect your capital, you should follow a risk management plan and learn the proper use of this system in the practice trading account.

 

 

Download the complete system description and the files here:

FREE CCI Trend Strategy

Download the FREE CCI Trend Strategy for MT4.

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