Trading Strategy Using CCI Stochastic and GMMA (2024)

Setup Strategy

Time frame 15 minute or higher.

Currency pairs: major, minor indices, gold, oil.

1. Indicators Used:

• CCI Stochastic Oscillator:

  • CCI Period: 28

  • Stochastic Period: 28

  • Stochastic Smooth K: 3

  • Stochastic Smooth D: 3

  • Overbought Level: 80

  • Oversold Level: 20

• GMMA (Guppy Multiple Moving Averages):

  • Short-term EMAs: 3, 5, 8, 10, 12, 15 periods

  • Long-term EMAs: 30, 35, 40, 45, 50, 60 periods

2. Entry Rules:

• Bullish Entry:

  • The CCI Stochastic (either %K or %D depending on the settings) crosses above the oversold level (20).

  • Confirmed by the short-term EMAs of GMMA crossing above the long-term EMAs, indicating the beginning of an uptrend.

  • Important! The price candle must close above the aqua line and the brown line. the color of candle muste be green.

  • If these conditions are met, a buy signal is generated.

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• Bearish Entry:

  • The CCI Stochastic moving average crosses below the overbought level (80).

  • Confirmed by the short-term EMAs of GMMA crossing below the long-term EMAs, indicating the beginning of a downtrend.

  • Important! The price candle must close below the aqua line and the brown line, the color of candle muste be red.

  • If these conditions are met, a sell signal is generated.

3. Exit Rules:

• Stop loss:

  • Price below above the previous swing high/low.

• Profit Target: Ratio Stop loss 1:1.1 to 1:1,2.

Conclusion: This strategy is designed to capture trades aligned with the prevailing trend, confirmed by both momentum oscillations and trend strength. It is particularly useful in trending markets, where it aims to maximize gains by staying in trades as long as the trend remains strong.

The strong point of this system is being able to filter signals when the momentum within a trend changes. Very important because it generates a profitability between 60 and 70%, remarkable for a trend following system.

Submitted by staff ForexStrategiesresources

Chart Setup:

1Zig Zag;

2MACD 21, 89,1; set on close

CCI 34set on close

CCI 46Set on close but superimposed at the same window as CCI 34.

Sistem Rules:

Enter long position:

1. TheZig Zaghas formed a low swing point and;

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2. Both theCCI 34 and CCI 46cross the zero line below and;

3. MACDis above zero;

4. you coul also enter when bothCCI 34 and 46cross the 100 level if the condition 1 and 3 are met

5. Aim to take profit of not more than 5 pips (TF 5) 8 pips (TF15) on EUR/USD

6. Exit on take profit or when the swing point of theZig Zagis high or wichewer one comes first.

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