Last Updated on May 8, 2025 by Tim Morris

CCI Reversal Forex Bollinger Band Strategy

This is a type of Bollinger band strategy that uses 1 hour or higher timeframe. Any currency pair is applicable in this system.

Forex Indicators:

• Bollinger bands (20, 2);
• CCI indicator (14 period below the chart);
• CCI indicator arrow (14 period on the chart).

Short Entry:

• Green candle goes out of the Bollinger Bands followed by a red candle (setup candle) coming into the Bollinger Bands;
• CCI indicator must cross down below or touches the top red line after the close of the red candle;
• CCI cross can either happen immediately at the close of the red candle that crosses the Bollinger Bands or up to 1 candle after;
• For MT4 users, see sell arrow CCI (14) period;
• Don’t enter if CCI has gone below the zero line at the close of the Setup Candle;
• Don’t enter if the candle is close to the Bollinger Bands center line.

Long Entry

• Red candle goes out of the Bollinger Bands followed by a green candle (setup Candle) coming into the Bollinger Bands;
• CCI must cross up above or touches the top red line after the close of the green candle;
• CCI must cross can either happen immediately at the close of the green candle that crosses the bollinger  Bands or up to 1 candle after;
• For MT4 users, see sell arrow CCI (14) period;
• Don’t enter if CCI has gone above the zero line at the close of the Setup Candle;
• Don’t enter if the candle is close to the Bollinger Bands center line.

Exit Position:

• Take Profit at 20 pips or exit 2 pips before the middle band.
• Set stop loss on the previous wing.

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