Forex CCI Divergence Bollinger Bands Trading Strategy
Forex CCI Divergence Bollinger Bands Trading Strategy:
Bollinger Bands and CCI Divergence Trading system is an reversal forex strategy.
Currency pairs: Major.
Time Frame 30 minute and 240 minute.
1. Bollinger Bands
2. 5 period Smoothed Moving Average set to High
a. Red
3. 5 Period Smoothed Moving Average set to Low
a. Blue
Indicator Sub Window 1
1. 21 period CCI indicator
a. Light Sea Green
b. Thickness of 2
2. 21 Period Bollinger Bands indicator
a. Shift: 0
b. Deviations: 2
c. Yellow
d. Apply to First Indicator’s Data
3. 5 Period Smoothed Moving Average indicator
a. Red
b. Thickness of 2
c. Apply to First Indicator’s Data
Indicator Sub Window 2
a. Value Up: Green
i. Thickness of 2
b. Value Down: Red
Thickness of 2
Entry Rules
Sell Trade Entry Rules
1. Check the Trend on the 4 hour chart. If the SMMA challel is below the Middle Bollinger Band,
the market is in a down trend.
2. Next, go to the 30 minute chart and wait for price to approach a Resistance area.
3. 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.
4. 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.
5. If these conditions are met, enter a new trade position as soon as the candlestick pattern or divergence pattern has completed.
6. Set your stop loss above the most recent swing high.
7. Trail your stop using the SMMA channel or middle Bollinger Band. You can also exit manually when the Bollinger Band on the CCI (first indicator window) begins to contract.
Buy Trade Rules.
1. Check the trend on the 4h chart. If the SMMA channel is above the middle Bollinger Band, the market is in an uptrend.
2. Next, go to the 30 minute chart and wait for price to approach a Support area.
3. 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.
4. 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.
5. If these conditions are met, enter a new buy trade position as soon as the candlestick pattern or divergence pattern has completed.
6. Set your stop loss below the most recent swing low.
7. 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.
In forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex CCI Divergence Bollinger Bands Trading Strategy?
- Download Forex CCI Divergence Bollinger Bands Trading Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy 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 strategy
- Load indicator on your chart
How to uninstall Forex CCI Divergence Bollinger Bands Trading Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
