CCI Divergence breakout is my favorite trading system that give me a lot of profits in last few months. This kind of setup is pretty easy to understand and to trade even for a newbie. The following chart shows a nice CCI Divergence breakout on AUDUSD pair on 18 June 2013. Since I am a scalper, M15 time frame is preferable and profitable for me.
The price has made a nice uptrend for several M15 bars and it confirmed with the up trending CCI indicator. But finally, when price makes new higher high, the CCI did not make higher high. It started to make lower high and this condition is known as divergence.
Do not enter the trade when you spot divergence unless there is a trendline break out. See the chart above how the price break the trend line and then a reversal take place. Many nice pips are on the way.
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