Trading strategy on combined indicator

Strategy on combined indicator is designed for trading on all currency pairs, futures, and commodity markets.

Marketplace: , stock, commodities, etc.
Indicators: SMA (50), RSI (7) with 30 and 70 levels, CCI (14), CCI (6), Stochastic (5, 3, 3), Fibonacci grid;
Timeframe: H1-Daily;
Strategy: intraday;
Protective orders: StopLoss, TakeProfit, TrallingStop, Breakeven.

Construction of a combined indicator

1) Simple Moving Average SMA (50) - dark blue on the chart - indicates the direction of the main trend in the market.
2) RSI indicator (7) is the blue line on the chart with levels 30 and 70.

On the RSI chart we create a combined indicator by overlaying several indicators on each other:

– CCI indicator (14), applicable to HLC/3, color black, bold. Levels on the chart are 0, 100, 200, -100, -200. We fix the minimum of 350 and -350.
- CCI indicator (6), color red
– Stochastic (5, 3, 3), MA method - simple, prices High/Low, levels 20 and 80. Color is green, signal line is red.

The basic rules of the trading strategy

So, we warn you that when trading this trading strategy, you should pay attention mainly to the black bold line CCI (14).

1. Wait for the black line CCI indicator will come out of the +200 or -200 level.

2. Wait for the CCI to cross the +100 or -100 level.

3. We make a deal to buy, if the black line has risen from the bottom up, and make a deal to sell, if it has fallen from the top down. At the same time very successful deals are made if their direction coincides with the direction of the black line. SMA indicator (50). And if the deal is also confirmed by similar signals on a higher time interval, the probability of a profit increases significantly.

4. Stoplossand a pending order to reverse the trade should be set for the nearest local maximum or minimum, very often they can be seen at once.

5. If the black line has gone beyond the +100 or -100 level again, you can re-enter the market after the next crossing of this level.

6. Targets for profit taking in a trading strategy are usually determined by Fibonacci extensions or at important levels. You can also trailing the trade or move the stop trade beyond the highs or lows of the previous trading day.

7. If, however, you receive trading signal before the release of, for example, Nonfarm Payrolls, it is either not necessary to trade on this day, or you should move a position in the breakeven level.

On the example you can see: the first deal was closed at stop-loss and after that a trade reversal was made. The second trade was entered into the market and TrallingStop for the minimum of the trading day.