CCI Divergence Forex Bollinger Band Strategy
This is another bollinger Band system that trades on reversal. Applicable only to major pairs and works on 30 minute and 4 hour timframe.
Forex Indicators:
- Bollinger Bands
- 5 period Smoothed Moving Average set to High
- 5 Period Smoothed Moving Average set to Low
- Fibonacci Pivots THV
Indicator Sub Window 1
- 21 period CCI indicator
- Light Sea Green
- Thickness of 2
- 21 Period Bollinger Bands indicator
- Shift: 0
- Deviations: 2
Apply to First Indicator’s Data
5 Period Smoothed Moving Average indicator
Thickness of 2
Apply to First Indicator’s Data
Indicator Sub Window 2
- Volumes indicator
- Value Up: Green
- Thickness of 2
- Value Down: Red
- Thickness of 2
Entry Rules
Sell Trade Entry Rules
- Check if the SMMA channel is below the Middle Bollinger Band, if so, then the market is in a downtrend.
- You must determine the trend. refer to the 4 hour chart.
- Look at the 30 minute chart and wait for price to approach a Resistance area.
- If there are no price action patterns to trade, check to see if there is divergence present between Price and the CCI/BB/SMMA window on the 30 minute time frame.
- If either of the above criteria are met, check that there is high volume, that the Volume bar is forming significantly higher or consecutively higher peaks.
- If these conditions are met, enter a new trade position as soon as the candlestick pattern or divergence pattern has completed.
- Stop loss must be set at the most recent swing high.
- You can use trail your stop using the SMMA channel or middle Bollinger Band.
- Manual exit is also helpful, just refer to the Bollinger Band on the CCI (first indicator window) when it begins to contract.
Buy Trade Rules.
- Check if the SMMA channel is above the middle Bollinger Band, if so, then the market is in an uptrend.
- See it on a 4 hour chart.
- Look at the 30 minute chart and wait for price to approach a Support area.
- If there are no price action patterns to trade, check to see if there is divergence present between Price and the CCI/BB/SMMA window on the 30 minute time frame.
- If either of the above criteria are met, check that there is high volume, that the Volume bar is forming significantly higher or consecutively higher peaks.
- If these conditions are met, enter a new buy trade position as soon as the candlestick pattern or divergence pattern has completed.
- Stop loss must be set below the most recent swing low.
- Trail your stop using the SMMA channel or the middle Bollinger Band.
- You can also exit manually when the Bollinger Band on the CCI(first indicator window) begins to contract.
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