I Talked in previous article about Stochastic Indicator you can read it through this link
.Today I will explain commodity channel index (CCI) and how to use it in Forex trading
(Commodity Channel Index(CCI
CCI Indicator distinguishes between increased buying cases as well the increased selling cases in the market ,and it measured by digital standard begins from -100 to +100 ,and there are some charts show it between -200 to +200
Best feature of CCI indicator that it determines the beginning and the end each trend during a time period of 20 days
.Best frame time with CCI indicator is 30 minutes
This indicator is provided on Metatrader program by clicking on insert then choose trend then then choose commodity channel index
The Ways of Trading Using CCI Indicator
First Way : 200 Lines
: Selling signal
If The CCI Indicator reached higher than +200 line then it started moving from top tending to bottom here we are ready to sell , the meaning that the currency reached to increased buying level or buying saturation
: Buying Signal
If The CCI Indicator reached loewer than -200 line then it started moving from bottom tending to top here we are ready to buy, the meaning that the currency reached to increased selling level or selling saturation
Second Way : Stochastic Lines
We consider the -100 is first support line
The -200 Line is second support line
We consider the zero line is the midpoint
We consider +100 line is first resistance line
We consider +200 line is second resistance line
.This way is the most common to trade using CCI because it is very easy
No comments:
Post a Comment