This little known index will make you easy money every day

January 9, 2018

The Commodity Channel Index (CCI) when used along with your moving average and Bollinger Bands will lead you to increased profits every day.

The CCI was developed as an indicator to identify trends and measures of the current price level relative to an average price level over a given period of time. As the indicator surge above or below the -100 or +100, this shows the start of an uptrend or a downtrend. A buy or sell trade can be executed to catch the beginning of the trend when the indicator crosses the hundred level.

Reversal

The indicator shows when it is in an overbought or oversold condition which the slope of the indicator turning into opposite direction, will often signal the start of a trend reversal. The gradient of the indicator also gives evident of the early momentum of the shift and the beginning of a trend in the making.

Double top or Double bottom

The indicator also works good with a price chart showing a double top or double bottom. By observing the crossing of 100 level and the slop of the gradient from 0 to +/-100, the appearance of double top and double bottom will help to trigger a buy or sell trade. This is more conclusive if happens in the overbought and oversold region (100 levels).

Trading within resistance and support

During low trading volume especially market close time where trading activities is at minimum, price that explicit side way movement will have CCI indication between -80 to +80 level. This is useful for scalping trading where few pips can be profited from currency moving sideways under this CCI indicator.

Mirror image of currency chart

CCI sometimes will be a mirror image of the currency trading chart itself. Especially when the high, low and close price are quite average and over time the movement of up and down are correspondently equal or close. Using this indicator can sometimes predict the price will go up after it touches the -100 line or the price will go down after it touches the +100 line. This allow trader to easily pickup trades to execute on an average trading hour daily.

CCI can be further used together with simple moving average and support and resistance level at a higher time frame. Experiment with various setups to achieve a high probability trading success rate. The major currency I used to trade using CCI are USDJPY, EURUSD, GBPUSD and USDCHF.

Source: bestforexranking com

Source: Free Articles from ArticlesFactory com

ABOUT THE AUTHOR

I am currently hosting bestforexranking com which provides reviews, articles and strategies. Am giving away a free eBook (with 40+ Forex Trading strategies) by signing up to my email newsletter. Go get your free copy today.

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s