Forex Strategy CCI Divergence + Trend Line

Forex Strategy CCI Divergence + Trend Line — as we know, almost all professional traders of financial markets often use different indicators for Divergence decision on the conclusion of a transaction, so we are today and consider a very simple but very effective strategy for forex, which is based on the divergence indicator CCI. predicting about razvarotah (or temporary pullbacks) prices in the forex market in the near future.

This strategy works well in all ranges, but it is advisable to use the above M15.

On the schedule for the chosen currency pair (which may be the same — whatever) install MT4 indicator — FX Sniper’s CCI (14)

First of all, let’s see what we assume divergence indicator CCI in this strategy.

Examples of divergence in the figures refer to CCI:

Divergence (Divergence) — a boundary other than the differences price chart and the indicator CCI. If the price on the chart makes successive highs, and the indicator shows the sequence of lows — this is the divergence CCI.

Similarly, if the price on the chart makes the successive minima, and at the CCI, we see the successive maxima — is also a divergence of the CCI.

Now let’s consider the conditions under which we will enter the market under the rules of forex strategy CCI Divergence + Trandeline.

conclude a deal to buy:

1. Determine the trend and see that the trend is down on our chosen time frame (price makes successive minima)

2. We are seeing a divergence in the CCI our chosen time frame.

3. In the second extreme of CCI closed at least 1-2 bars after the formation of divergence.

4. Building a trendline from the maxima of the price movement downward in the interval of divergence.

5. The price closes above the trend line downward, constructed from the maxima points in the interval under consideration rasspolozhennyh divergence.

6. conclude a deal on the opening price the next bar after the breakout of the trend line.

7. Stop-Loss is placed below the near the local minimum or a candle breaking the trend line (if it is at least 50-70 points).

8. At a distance equal to the size of stop-loss to breakeven position translate and close half the trading position.

9. transfers the remaining half of trading positions on a trailing stop (trailing size depends on the chosen currency pair and time frame in which you trade, but its magnitude is approximately must be equal to the initial stop-loss). If you prefer, you can use the Universal trailing stop (it is built of seven Trailing Stop!)

Note: if the trend line after building you see a new divergence or later traced to the extreme indicator CCI — should be redrawn to follow the trend line and the points 3-6 (above) or delete it!

For deals for sale — check the conditions!

and here is another example of the divergence of transactions shown in the 1st picture:

In the breakdown of the trend line third divergence, if desired, the stop-loss orders can be placed beyond the local minimum, and a candle penetration of the trendline. In this half of the transaction would have closed with gains, and the rest position closed on bezubytku.