Showing posts with label CCI. Show all posts
Showing posts with label CCI. Show all posts

Thursday, August 13, 2015

CCI Trading Strategy as At August 13, 2015


Using CCI For Some Simple Entries On Today’s Charts.


CCI Divergence
Here is a one hour chart of EURUSD showing some Bullish Divergence

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and the Daily USDCAD showing Bearish Divergence

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Now we can apply the CCI 200 Trend Line break:

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You can see that the entries are quite clear cut and also accurate.

I will look for a couple examples of CCI Slingshot entries from today’s charts.

Here is CADJPY daily. You can see the slingshot here, the CCI 14 has risen to the zero line while the CCI 6 has climbed to the 100 level.

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On the GBPCAD Daily chart is a great example of the CCI Slingshot. If you check the price bars you will see that this is a great continuation entry that yielded quite a few pips.

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CCI is a great scalping tool, you can use it on the fast time frames as well as the slower time frames. It takes a few hours of screen time to get your eyes used to picking out the entries.

CCI Divergence is quite useful and often very easy to see on a chart, particularly if you are used to drawing trend lines.

There is a few examples from the charts this morning, I know there are many more available for some profitable trade entries.

Saturday, August 8, 2015

CCI 200 TrendlineBreak Trading Strategy as at August 8, 2015











Opportunities to use the CCI 200 Trendline Break are on every currency pair whether using a Renko trading strategy or the regular bars.












Here are a couple articles giving additional insights as to how to use the CCI Indicator.


A Simple CCI Strategy for Scalpers - DailyFX
 Wed, 25 Jun 2014 19:02:21 GMT
A Simple CCI Strategy for ScalpersDailyFXOne of the hardest steps a trader must take before scalping their favorite Forex pair is creating a strategy. While strategies can range from the complex to the mundane, creating a plan for trading the market ...

Read more ...



Time Scalping Entries With CCI - DailyFX
 Wed, 07 May 2014 19:06:13 GMT
Time Scalping Entries With CCIDailyFXThis is especially true for scalpers looking to take advantage of quick changes in price and momentum in the market. Normally an oscillator can be used to simplify this process and give traders a clear execution s ...

Read more ...

Monday, August 3, 2015

How To Build a Forex RenkoTrading Strategy to Yield 40 Pips Every Day

As traders, we all want to have a positive cash flow, we all want to make enough money to pay for our time and work, here is a Forex Renko Trading Strategy that will help to reach that goal.

What we need is a consistent strategy, a time frame in which we are going to be at the screen to do our trading and the discipline to stick at it until we succeed.

We have to know, also, that we can not get every move in the market place. It is folly to chase every move or every trend. We can only get the moves that our strategy will point out.

I have a Forex Renko Trading Strategy method to help us to achieve a reasonable amount of profits daily.

I will lay it out in simple form, hopefully so that people can understand it and see the simplicity and be able to execute successfully.

For this exercise we will be using Metatrader 4 and setting up some Renko charts.

I will briefly cover how to get the Renko charts built.

First we will open one minute charts for several currency pairs, the majors, to start with. Of course you have your personal preferences as to which pairs you like and feel free to choose. In addition to those, open a one minute chart for the Dax index.

On to each of those charts place the EA Renko 3.4 and set the bar size to 10 pips, except for the DAX which could be about 50 pips.

This action will build an offline chart for each of those instruments, open those and shrink the one minute charts.

Now, on the M2 offline charts. for each one you are going to want to change each to a 'line' chart' and go into the properties for each chart and change the 'line'  to have no color...

Now add the Heiken Ashi bars to each chart. and now we have our work charts almost set up. You will have 5 or 8 charts ready to go.

The next step is to get the indicators on the chart, the ones we are going to use to detect our entries.

Configure your chart the same as the chart in this post, the CCI SlingShot;

You need the two CCI in the same lower chart. Have a look at that post and be sure to grasp that simple method.

Do the same for all of your offline charts, perhaps make a template after the first one and apply that template to all the rest..

I think you are seeing how this system is really simple.. We are going to trade slingshots, they happen frequently and they are so easy to spot on a chart.

Now that we have the charts set up, one more thing to do.

Have a look at this post and review the 200 Trendline Break entry.  Study this one carefully.

Get used to spotting this one as it is the entry that will help you with  finding a trend change.

So far, you have a trend change entry and also a continuation move entry.... in other words, when something is moving, you can capture every part of the move, and if you are careful and disciplined you are going to do very well on each move on each pair.

One more thing we have to study before we have this concept.

Have a look at this post about CCI Divergence. Study the diagram and learn to mark this divergence both long and short. This is the warning for a pending trend change in many cases.

Now you have two patterns to enter with and a divergence tool. and nice clean charts.

You can shrink the charts down a bit and probably can watch  quite a few charts ion this way.

While the title of this article mentions 40 pips every day, I know from personal experience that this setup will give you a lot more than 40, especially if you are watching the DAX.

I am not sure if there is a simpler trading system than this, certainly the trades show themselves clearly and you have the indicator to give you precise entries.

I caution you against adding much to the charts, perhaps a 50 moving average, other than that leave the chart clean. 

Chart clutter causes confusion and will help to make mistakes.

Please be sure to use a stop loss with every entry, that is most important!

Enjoy!


Renko Trading Strategies (3)

I want to demonstrate the CCI Slingshot as a Renko Trading Strategy that can be employed on a daily basis on most charts.

This one will require two indicators to make it work. First we will place a CCI14 on the chart and then overlay that with a CCI6 (the dotted line)

Note that in this example the CCI 14 has approached the 0 line before easing back while the CCI6 has approached the 100 level. It has to be this way, if the CCI6 does not get high enough the trade could be  a bad entry causing a loss.

This pattern is actually a divergence between the two indicators.

See the example here




You can see that the CCI Slingshot is actually a continuation move on the trend.

This entry can be used to initiate a trade or to add to a position.

Again, all that is needed for this is two CCI indicators overlaied in a lower chart.

This example is a short pattern



Notice there is a similar pattern to the left of the one with the arrow. This one does not qualify as a CCI Slingshot because the CCI14 rose far above the zero line. That is an important aspect, the CCI14 has to rise to close to the zero line......

This Renko chart has 20 pip bars, you can see that the slingshot entries can be quite lucrative.

Of course it takes practice to see these patterns on the indicator, all entries must be 'With trend'.

If you have been looking at the posts about the Renko charts on this blog you are seeing how simple it can be to trade with Renko Bars.


There are several other Renko Trading Strategies on this blog, hopefully you will have a chance to examine those.

Renko Trading Strategies (2)

The 200 Trendline Break is another of those Renko Trading Strategies that is relatively simple to execute and appears on the charts of almost every instrument, be it forex, stocks or futures.

This trade involves using only the CCI indicator and and a trend line.

What is important is that the CCI has reached approximately 200 level from where we can draw the trend line to intersect the CCI.

Notice this example:




You can see that the line was drawn from the top of the CCI, which is close to the 200 line, and intersects where there is a bump on the CCI moving up.. When you look up at the price bars you will see that the bar is a valid entry point and that there is a relatively good move upwards.

This one will take some practice to recognize and master, however the time is well worth it as this  pattern gives some excellent profits.

The 200 Trendline Break is a very simple and accurate scalping strategy

By the way, this chart is made of 20 pip Renko Bars which is my own preference.  So,me people prefer smaller bars and some people prefer much larger bars.

Of course this trade can be made with short trades as well as long trades, I have only illustrated a long entry on this chart.

Again, this is a simple concept requiring only one indicator.

Please look elsewhere on this blog to see other Renko Trading Strategies.


Friday, November 7, 2014

Can We use CCI Divergences to Enhance Our Trading Strategies?

What is the CCI and how will it assist a trading strategy?


Simply put, the Commodity Channel Indicator was created in about 1980 by Mr Donald Lambert and it is used by traders to  determine extremes in price and potential reversals.

Most of the time it does an amazing job in illustrating divergences between price and oscillator.

Many traders use the CCI patterns for their entries and exits, however that is not the main purpose of this article. Perhaps another day we can look at how people can make use of the indicator and its levels for entries and exits.


Does Divergence always lead to a profitable entry?  NO!


Divergences are a hint that something may be coming in the way of a change in direction but they are not to be relied upon. Price action tells the truth. So many times a trader can be fooled by the indicators he has on his chart. The indicators are not perfect, the market has a way of proving this to us constantly.


What Does Divergence Look Like?


For your review I am inserting a diagram from the www.trading-naked.com site, this is an excellent explanation for someone new to using divergence



This diagram has been used by many, many people and it simplifies things greatly.

The application of detecting divergences can be as simple as drawing lines on both the oscillator and the price chart, draw from tops to tops on both or from bottoms to bottoms on both. And then compare the lines as per the diagram above. It will not take very long for you to see how valuable the CCI can be for your trading strategy.

To learn how to apply this method, a person has to spend some time actually drawing lines on charts and it may be something that has to be practiced for a few weeks until it finally clicks.. The good news is... once you have established some competence in detecting divergences you will spot them quickly and easily even before you draw the lines.

What are the takeaway's from all this?


  • The CCI is an excellent tool for spotting divergences.
  • The CCI is available on most charting programs.
  • Divergences can point the way to pending trend changes.
  • By adjusting the period of the CCI indicator you can make it more or less sensitive to divergences.

Let's have a look at what might be happening next week. I have marked some divergences on a couple charts and you may see from these and some that you may mark on your own that there appears to be a change coming in the Forex pairs.







Once you have worked with this for a few hours you may well decide to add this to your trading strategies.

Enjoy your weekend!!

Update:

Here are two excellent examples of divergences that worked well to forecast a trend change. This morning was the Non Farm Payroll announcement which caused a change in the markets. On these charts I had the Macd set up and sure enough, what was indicated by the divergence actually occurred. Take a look at the charts.


US Dollar Index




Gold






Tuesday, November 4, 2014

Divergent Opportunities for November 4, 2014



Here are a couple 240 minute charts that may be worth watching for a couple days as there is CCI Divergence appearing.

I like to be aware of divergences between the price and indicator as it often indicates a change in direction.  Not always does direction change but price action will point out suitable entries.


For me, CCI Divergence is most useful as it is easy to spot, the indicator is made up of only one line on the chart, everything is simple.

These charts are but a small portion of the divergences I have seen in the past few minutes, I may scan my charts daily to see what opportunities I can post.

These charts are 240 minute, perhaps the Daily charts would be more useful considering the time that it takes to do the research and build the post.






















Today I have posted  three current examples, however, more would be better..! and the post length will be much longer tomorrow,

Should you have any preferences regarding the time frame, please let me know and I will accomodate your request.

Good Trading!!