CCI Channel Trading Strategy with Bollinger Bands Bounce

CCI Channel Trading Strategy with Bollinger Bands Bounce is based on the use of trend reversals and is built on a combination of slow Bollinger Bands and modified CCI indicator. The aim of the strategy is to identify price reversals for entering the market.

Input parameters

• Currency pairs: any, including cryptocurrencies
• Timeframe: M15 and older
• Trading times: London, New York
• Risk management: after calculating the stop-loss, choose such a volume of lot, that the risk was not more than 2-5% of the deposit per trade

Used indicators

• Bollinger Bands (period 100, deviation 3)
• I-g-cci2 (period 21, level 0)

Setting up the price chart

• Unpack the archive
• Copy the template into the templates folder
• Copy the indicators to the folder MQL4 -> indicators
• Restarting the terminal
• Open the chart of the desired currency pair
• Set a template named CCI with Bollinger Bands Bounce

The schedule should look like this:

Signals indicating the opening of a long position

• the price is below the middle line of the Bollinger Bands. Ideally, the price bounced off the lower boundary of the Bollinger Bands indicator;
• CCI indicator line crossed the zero level from bottom to top.

Signals indicating the opening of a short position

• the price is above the middle line of the Bollinger Bands. Ideally, the price bounced off the upper boundary of the Bollinger Bands indicator;
• The CCI indicator line has crossed the zero level from top to bottom.

Setting Stop Loss and Take Profit Orders

• Initially a stop-loss order is set above/below the upper or lower Bollinger Band. Subsequently it is recommended to use trailing stop;
• Take Profit order can be set in two ways: aggressively - at the opposite border of the Bollinger Bands, conservatively - at the median line BB.

Recommendations of the author of the strategy

• if the price is 5 points (for four-digit quotes) above the midline - you can't open a buy position under any circumstances. The same is true for selling when the price is 5 points below the midline.
• Despite the fact that the strategy has signs of trading in the channel, it is recommended to open transactions only in the direction of the dominant trend, which can be determined on higher timeframes.

Before using the CCI with Bollinger Bands Bounce trading strategy on a real deposit, be sure to test it on a demo account.

Download CCI with Bollinger Bands Bounce Strategy Template and Indicators

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