13×2 CCI-ADX Range Trading Forex Strategy

This strategy combines the ADX and the CCI-Histogram indicator to yield an incredible and money-spinning forex strategy.

The strategy is specially tagged “13 x 2” because both indicators have their periods altered to 13.

The indicators adopted are modified ADX and CCI, as such strong currency trends, along with overbought & oversold trading levels can be properly spotted.

Chart Setup

MetaTrader4 Indicators: ADX_MA.ex4 (Inputs Variable modified; Ma_Period=13), CCI-Histogram.ex4 (Inputs Variable modified; B-period=13)

Preferred Time Frame(s): Any

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

Download the 13×2 CCI-ADX Range Trading Forex Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy order if the following indicator or chart pattern gets displayed:

  1. If the blue dots of the ADX_MA custom indicator aligns somewhat below the candlesticks as seen on Fig. 1.0, price is said to be pressured higher i.e. a trigger to go long on the designated currency pair.
  2. If the maroon line and royal blue vertical bars of the CCI-Histogram custom indicator breaks above the 0.00 signal level, the sentiment in the market is believed to be bullish, hence a buy alert.

Stop Loss for Buy Entry: Place stop loss 1 pip below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following holds sway:

  1. If the ADX_MA custom indicator forms a red dot while bullish orders are open in the market (refer to fig. 1.0), price is said to be experiencing a possible reversal, hence an exit or take profit is advised.
  2. If the maroon line breaks below the 0.00 signal level when a bullish trend is ongoing, price is said to be taking a U-turn, hence an exit or take profit is recommended.

Sell Entry Rules

Enter a sell order if the following rules or conditions takes precedence:

  1. If the red dots of the ADX_MA custom indicator aligns somewhat above the candlesticks as seen on Fig. 1.1, price is said to be pressured lower i.e. a trigger to go short on the designated currency pair.
  2. If the maroon line and red/dark gray vertical bars of the CCI-Histogram custom indicator breaks below the 0.00 signal level, the sentiment in the market is believed to be bearish, hence a sell alert.

Stop Loss for Sell Entry: Place stop loss 1 pip above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following holds true:

  1. If the ADX_MA custom indicator forms a blue dot while bearish orders are open in the market (refer to fig. 1.1), price is said to be experiencing a possible reversal, hence an exit or take profit is advised.
  2. If the maroon line breaks above the 0.00 signal level when a bearish trend is ongoing, price is said to be taking a U-turn, hence an exit or take profit is recommended.

Sell Trade Example

Fig. 1.1

Free Download

Download the 13×2 CCI-ADX Range Trading Forex Strategy

About The Trading Indicators

The CCI_Histogram.ex4 is one of the variant of the Commodity Channel Index (CCI) that gauges the current price level in relation to a mean price level over a specified time period.

The ADX-MA.ex4 indicator is an enhanced Average Directional Index (ADX) that is trend following with integrated smoothing filter.

Click Here to Leave a Comment Below 0 comments