FXSniper's CCI is truly a powerful indicator if we know how to trade with it. Woody 's CCI Club is a popular trading club which help other traders to success in forex with their own system based on FXSniper's CCI. But here I do not want to discuss about Woody's trading system. I want to show you how to trade with FXSniper's CCI in a dumb way. Sorry but its really simple system that anyone can follow it. But off course stop loss always used tightly.
Rule:
- Buy when FXSniper's CCI cross above zero line
- Sell when FXSniper's CCI cross below zero line
Other traders suggest to wait the second bar to open the trade as confirmation but I think we can open the trade immediately when CCI cross zero line, as long as our stop loss is placed few pips below or above previous high or low. See example below
Please note that its wiser to check the stop loss position before we enter the trade. If the previous low or high that we use for stop loss is too far, its better to wait to the next signals.
On the picture above we open buy immediately when CCI move above zero line. Always put the stop loss before take profit because the price can move quickly. The sample above is ideal for buy because CCI continue to move up. What if the CCI move up 1 bar and then move back down? This is the importance of stop los. See example below:
On picture above, we sell when we see CCI cross below 0 line but the next candle CCI move up and cross zero line. At this situation, we open another position along with CCI direction. We open buy. This is where our sell stop loss hit but we have another good trade position with us.
Like Woody's technique, "don't worry about a position ends up with minus or plus because we have another position so overall it will end up with profits".
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