Cci divergence trading strategy

Here is a divergence trading system that is based on the CCI technical indicator, and can be used to trade price reversals on all of the major currency pairs.
Table of contents

The typical approach of finding trade signals with oscillators is to focus on oversold and overbought levels. The same techniques apply to short positions at the line. When you employ a tool, you always need to decide on its settings. And in particular, its lookback period is the most critical parameter.

Hence, the cycle length is 24 hours. Too short a data base will produce whipsaws as the index interprets daily price fluctuations as being cycle tops or bottoms. For this, we will rely on price action analysis. However, if the CCI falls below at any point, the trading setup is void. Cancel all orders, and wait for another opportunity. Cancel your sell stop order, and wait for the next setup.

In the two of the examples below, I applied the Congestion Zone indicator from my trading course to highlight potential support areas. This minute chart example comes from the 6E futures market. The inside bar and its preceding bar formed a distinctive two-bar reversal pattern.

What does divergence mean? How to use it?

Reversal patterns work best when they jut out of preceding price action, and that was the case here. If you check your charts, the market continued rising after moving sideways for a bit. Nonetheless, the CCI divergence was a useful signal of a stall in momentum. Depending on your stop-loss placement, this trade could work. However, with a standard stop-loss below the setup bar, the market whipsawed us out of our position. Take a close look at the CCI panel. Immediately before this setup, the CCI pushed to extreme levels twice.

Recent Posts

Each time, the CCI reversed sharply without any struggle. The CCI Divergence indicator signal is one of the most potent signals among the indicators that exist in the market. Divergences indicate a potential investment point because the directional moment does not confirm the price.

A bullish divergence occurs when the underlying value makes a low, and CCI forms a higher low, showing less downtime. A bearish divergence is formed when security records a higher and the JRC forms a lower high, showing less upward momentum.


  1. Tracking Convergence and Divergence Using the CCI?
  2. forex true or false!
  3. cox and kings forex jobs.
  4. are stock options taxable income!
  5. Awesome CCI Hidden Divergence Forex Strategy.
  6. What are divergence indicators?.
  7. legal forex trading in malaysia!

The indicator, in addition, finds hidden divergences HD. Hidden divergences are in the direction of the trend, and are often powerful signals for trade. This indicator is very functional and can significantly improve the outcome of your trading.

Cci Divergence Trading Strategy | Invertir

And these are mostly used in stock trading. You can use the MACD with standard settings 12, 26, 9 or check your favorite settings in combination with divergence. By default there are no divergence indicators built in here. However you can download them for free from my blog and install them in Metatrader 4.

It is a situation when the price continues to move in one direction and the oscillator changes direction and moves in the opposite direction. For example, the price has been rising for several weeks, similarly to RSI, but at some point RSI changes direction and moves down.

Top 3 CCI Trading Strategies for Consistent Returns

The most popular ones. In this order. For two things. First of all, divergence is a signal about the possible end of a movement. If you have an open position you can take profits. The second is when you are looking for an opportunity to open a position. Then when a divergence occurs you open the position after signal to entry.


  • Complex trading system #8 (CCI Divergence Breakout).
  • what are indicators in forex trading!
  • CCI Divergence 4H Chart On USDCAD 24/12/ | 5%ers Forex Blog.
  • price action swing trading (past) strategy!
  • forex spread nedir?
  • binary options trading is hard.
  • CCI Trading Strategy: Day Trading With Commodity Channel Index | The Secret Mindset.

    • Home indicators. Subscribe to newsletter and get divergence indicator in first message. Newsletter is free and you can unsubscribe at any time.


    1. forex fbs review.
    2. forex_sunrise_indicator mq4!
    3. Top 3 CCI Trading Strategies for Consistent Returns.
    4. Post new comment;
    5. professional safe systems trading?
    6. EMA / CCI-divergence – Binary Options Strategy.
    7. Interpretation CCI Divergence.

    For Free. Click confirmation link and download will start right away. How to use the divergence in Metatrader 4?

    Calculation CCI Divergence

    What is divergence? Which oscillators can I use? What can I use divergence in trading for? Related Posts.