Tag: CCI

Trading system for MT4 with RAVI FX Fisher and Market Guru indicators

The trading system for MT4 that we are going to present below aims to enter market trends shortly after they begin. Therefore, it is not a counter-trend system, but rather a trend-following system that uses a series of technical indicators to detect changes in market direction as soon as possible.

It is a system based on a series of well-known technical indicators such as the JCCI and moving averages, although there are also modified indicators that were designed for Metatrader 4. Therefore, this methodology can only be applied to this trading platform.

Together, all these tools are designed to analyze the market trend and determine when a change is likely to occur. However, given that the trend changes are not easy to predict and before one occurs there may be false signals, especially in range markets, it is recommended that the trader always apply risk control and monetary management measures that decrease the impact of losing trades.

As always, it is recommended to test this system in a demo account before using it to trade with real money.

Trading system with stochastic oscillator and CCI indicator

by rcanessa

In this article we will present a trading system with stochastic oscillator that can be used to trade in any market and in any time frame (although it is preferable that the system is not used in time frames less than 15 minutes), which is based on the MACD, CCI and stochastic oscillator technical indicators. It is a technical trading strategy that provides clear buy and sell signals, as well as exit and take profit signals.

Because it is a system based purely on technical analysis, we do not recommend the trader to operate with this system in the periods in which economic news or important market indicators are published, since the trading signals of technical systems like this tend to fail.

As always, it is recommended to test this methodology with a demo account before using it to trade with real money.

Commodity Channel Index (CCI) Indicator

by rcanessa

Commodity Channel Index – A Effective Tool for Traders

The Commodity Channel Index (CCI) was published in the October 1980 by Donald Lambert. Since its introduction its popularity is rising higher and higher as it is becoming a very common tool for traders. Commodity channel index is becoming a very effective tool for traders that use to identify cyclical trends in commodities as well as equities and currencies. There is nothing handier tool than the commodity channel index as it is a very easy way to chart cyclical turns in commodity prices. There are so many traders implied this tool in their business and get huge success in the field of trading. There is certain formula available to calculate commodity channel index.

The formula has been given below:

CCI =(Typical Price – SMATP) /(.015 X Mean Deviation)

Fortunately, you don’t have to calculate the CCI formula by hand, unless you have to give a good test of your mathematical skills or knowledge. CCI is an oscillating indicator and momentum indicator. The CCI is been calculated by using the typical price and simple moving average. The standard deviation is after that added with the scaling factor of .015 and scaling factor approximately confines 70% – 80% of indicators fluctuations around +100 to -100. Scaling factor of 0.15 was been suggested by Lambert Donald.

The formula makes use of simple moving averages of typical price that is same to the average price. The unweighted variables make the consistent evaluation of the actual conditions with relation to the historical price activity. CCI is been used to trade currencies, equities, as well as commodities. All the chartable assets are analyzed with the indicator. The CCI oscillates above & below zero line.

Trading System with RSI and CCI

by rcanessa

This is a simple trading technique based on the use of the indicators RSI (oscillator) and CCI (trend indicator). The author claims it is a pretty efficient system, however, I recommend to evaluate it on a demo account before risking real money. The strategy was explained in a forum on the Forex market and its author has indicated that sometimes he obtains more than 400 pips in two days with this system.

To implement the system the trader requires a candle or bar chart with a time frame of 5 minutes (the trader can use longer time frames but can be more risky). The indicators used are the RSI at 14 (it can also be used with 8 periods too) with additional levels at 45 and 50 and the CCI with 14 periods. The recommended currency pairs are:

EUR/USD.
USD/CHF.
EUR/JPY.
GBP/USD.

Because it works based on oscillators and in a short time frame, the system produces false signals, which can be filtered using an indicator like the ADX at 14 for example. The MACD can also be used with a configuration of (3, 81, 29) and (3, 10, 16). Another indicator that can be used is a moving average to verify the direction of the trend. Remember that in markets with a strong tendency the oscillators produce even more false signals so it is best to trade in favor of the trend. For that an EMA can help us.