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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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