High accuracy “CCI CMS Trend Trading System” – I want to explore how to use this powerful indicator when day trading. In this trading system, we will combine the CCI indicator with the SMS Trend.
- Time Frame: Daily
- Currency Pairs: GBPUSD and GBPJPY
First of all, you should remember that the CCI indicator is not a good standalone tool. Like any other oscillator, the CCI needs to be combined with an additional trading tool.
- Commodity Channel Index (CCI)
One of the fundamental trading principles that our team at ForexWOT religiously follows is to trade in the direction of the dominant energy of the market. This is really important, so make sure you commit this to memory.
But how we determine the dominant energy of the market?
That’s where the Forex CCI CMS Trend strategy comes in and the price action as well.
- Download TraderVersity.Com-CCICMSTrendSystem (Zip File)
- Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators /
- Copy the “TraderVersity.Com-CCICMSTrendSystem.tpl” file (template) to your Metatrader Directory …/templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex system
- Right-click on your trading chart and hover on “Template”
- Move right to select TraderVersity.Com-CCICMSTrendSystem
- You will see “Forex CCI CMS Trend System” is available on your Chart
- Commodity Channel Index (CCI): Above level 55
- CMS-Trend: Bullish ( red line > white line > lime line)
- Commodity Channel Index (CCI): Below level -55
- CMS-Trend: Bearish ( red line < white line < lime line)
The stop loss rules of CCI CMS Trend System are pretty straightforward.
You can simply use price action techniques to determine the proper location of your stop.
For example, if you are buying, you should look for a bottom located near your entry point. Simply place your stop loss below this point.
The rules for taking profits with this strategy are even simpler than the stop-loss rules.
You should close your trades whenever the CCI gives you a signal in the opposite direction.
Now let’s review these three rules in the below chart: