30 Sep 2009 - Trading using daily CCI for GU

Daily CCI for GU

This trading method works very well for GBP/USD pair.

It takes only 5 mins of your time everyday.

So far it has proven with a return of 10-20% return of investment.

Setup: Using prefered Oanda trading platform

Daily Chart

CCI(34) with -150 and 150

Coupled the CCI(34) with BB(14, 0.8) and BB(14, 0.3)

Your setup should look something like this

Type of Trades:

The following will be the trade that I will engage.

(1) Long Trade with CCI oversold

(2) Long Trade with CCI Not oversold

(3) Short Trade with CCI overbought

(4) Short Trade with CCI Not ovebought

Long Trade with CCI oversold

Entry: By Market Order

(1) If CCI is oversold, that is if it is more than -150.

(2) The above condition (1) only happen less than 2 days

(3) Daily candle has completed forming (for Oanda it is at 1200hrs SGT)

(4) Enter Long trade if CCI cuts the lower of the BB(14, 0.8)

For example:

Enter on 1200hrs on 13 Mar 2009

Long at opening price around 1.39210

Why? Because CCI the day before on the 12 Mar 2009 is -145 and the day before is -171. Oversold is less than 2 days ago.

Also CCI has cut the outer band of the BB(14, 0.8).

Exit: By Closing Trade

(1) When CCI is out of the upper top of the band of BB(14, 0.8)
(2) When CCI gradient has turn -ve from +ve

If CCI runs down and out of the bottom band of BB(14, 0.8), close the trade.

Always trade after daily candle has been form.

I will touch on the other 3 entry later.

Range trading 21 Sep 2009

I am proposing a series of trading method for daily action.

The first of it is Range Trading:
Conditions:
One: When there is a lack of news
Two: A day of dispersion, giving raise to a price action that is range.

Actions:
Use 5 mins chart
Long when CCI 14 is below -150.
Candle close outside BB(14,2)
Do a market order.
Take profit when price touch the the top of BB(14,2).
If not able to monitor, simple set a TP for 10-20 pips, depending on the opening of the BB(14,2).

Likewise for short trade, use CCI above 150.