Cci 5 trading strategy


cci 5 trading strategy

short sell (put) signal. Once the trading bias is set, daily CCI is used to generate trading signals when it reaches its extremes. For example, daily charts could be used to identify the bigger trend and dictate the trading bias. CCI can be used in any market and is not just for commodities. In theory, any combination of timeframes can be used. The white areas show when 26-week CCI was in bear mode, which means the most recent signal was a plunge below -100.

In this example we will assume the Market and the stock you re looking at is in a downtrend (Bearish).
Look for stocks trading over the 100 zone which is considered your setup.
This strategy uses weekly, cCI to dictate the trading bias when it surges above 100 or plunges below -100, which are key levels noted by Lambert.

Cci 5 trading strategy
cci 5 trading strategy

For example, when using multiple timeframes, make the strategy more stringent by only taking long positions on the shorter time frame when the longer-term CCI is above 100. A strong uptrend subsequently took hold and 20-day CCI did not dip below -100 until March 2011, six months later. Wait for a smaller countertrend movement. Buy Signals and Exits in Longer-term Uptrend Figure 3 shows three buy signals on the daily chart and two sell signals. Bullish signals are ignored because the bigger trend is down. This bullish bias remains until there is a surge below -100. If you are trading traditional markets the strategy doesnt utilize a stop lossentries and exits are all based off the indicator.


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