Hi traders,
I am starting a journal with the CCI (10) indicator. Buy signal above the 50 level and sell signal below the -50 level. Before entering a buy trade, confirm that the overbought zone is also reached in the next higher timeframe. Before entering a sell trade, verify that the oversold zone is also reached in the next higher timeframe. If not, no trade. Stop loss on the previous swing high/low. Also, close the trade when the opposite overbought/oversold zone is reached.
I am using the CCI_CustomCandles indicator wich shows green candles in overbought territory and red candles in the oversold zone. I am trading the 4hr timeframe and currency pairs with less than 10 pip spread. Here is a pic of my monitoring setup:
http://i59.tinypic.com/9vjukl.jpg
Here is my first trade with the USDSGD pair. Vertical line shows the time of entry and confirmation of overbought zone in the two TF.
http://i57.tinypic.com/2wcnnea.jpg
I picked up the idea from Robert Haddad, a French speaking trader. He uses a stop and reverse strategy with the RSI (5) and its 60 (buy)/40 (sell) levels. CCI (10) with 50 (buy)/-50 (sell) levels is a close approximation of his indicator. Here is a link describing his technique. It's in French, but use your favorite translator for a better understanding. The images are pretty explicit.
Instead of using a stop and reverse technique, I prefer to enter trades with a higher TF confirmation. I will try to update my trades as much as I can.
Chamane
I am starting a journal with the CCI (10) indicator. Buy signal above the 50 level and sell signal below the -50 level. Before entering a buy trade, confirm that the overbought zone is also reached in the next higher timeframe. Before entering a sell trade, verify that the oversold zone is also reached in the next higher timeframe. If not, no trade. Stop loss on the previous swing high/low. Also, close the trade when the opposite overbought/oversold zone is reached.
I am using the CCI_CustomCandles indicator wich shows green candles in overbought territory and red candles in the oversold zone. I am trading the 4hr timeframe and currency pairs with less than 10 pip spread. Here is a pic of my monitoring setup:
http://i59.tinypic.com/9vjukl.jpg
Here is my first trade with the USDSGD pair. Vertical line shows the time of entry and confirmation of overbought zone in the two TF.
http://i57.tinypic.com/2wcnnea.jpg
I picked up the idea from Robert Haddad, a French speaking trader. He uses a stop and reverse strategy with the RSI (5) and its 60 (buy)/40 (sell) levels. CCI (10) with 50 (buy)/-50 (sell) levels is a close approximation of his indicator. Here is a link describing his technique. It's in French, but use your favorite translator for a better understanding. The images are pretty explicit.
Instead of using a stop and reverse technique, I prefer to enter trades with a higher TF confirmation. I will try to update my trades as much as I can.
Chamane