Trading currencies online does tend to bring along a rollercoaster of emotions once your positions or orders are live in the market.
Scalping does help you cut down on these emotions and once this is achieved you’ll stay better focused on the real business of trading.
The CCI Woodies forex trading strategy is a scalping strategy that is poised to help you achieve this and many more.
Chart Setup
MetaTrader4 Indicators: DoubleCCI_Woodies.ex4 (Input Variable modified; TrendCCI_Period=58, EntryCCI_Period=24), ChandelierStops_v1.ex4 (Input Variable modified; Length=30)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Download
Download the CCI Woodies Forex Scalping Trading Strategy
Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy order in the market if the following indicator or chart pattern gets displayed:
- If the blue line and histograms of the DoubleCCI_Woodies.ex4 custom indicators breaks and stays above the 0.00 signal level, price is said to be pressured higher i.e. a trigger to buy the pair of interest.
- If the blue line of the ChandelierStops_v1 custom indicator forms below the candlesticks as seen on Fig. 1.0, price is said to be in an upward push, hence a trigger to buy the currency of focus.
Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following holds sway on the activity chart:
- If the blue line and histograms of the DoubleCCI_Woodies.ex4 custom indicators breaks below the 0.00 signal level, price is said to be trending lower, hence an exit or take profit is advised.
- If the red line of the ChandelierStops_v1 custom indicator forms above the candlesticks or price bars, the sentiment in the market is believed to be altering from bullish to bearish, hence an exit or take profit is recommended.
Sell Entry Rules
Initiate a sell order if the following indicator or chart patterns holds sway:
- If the blue line and histograms of the DoubleCCI_Woodies.ex4 custom indicators breaks and stays below the 0.00 signal level, price is said to be pushed lower i.e. a trigger to sell the currency pair of interest.
- If the red line of the ChandelierStops_v1 custom indicator forms above the candlesticks as depicted on Fig. 1.1, the sentiment in the market is said to be bearish, hence a trigger to sell the asset of interest.
Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the blue line and histograms of the DoubleCCI_Woodies.ex4 custom indicators breaks above the 0.00 signal level, price is said to be somewhat pushing to the upside, hence a trigger to exit or take profit at once.
- If the blue line of the ChandelierStops_v1 custom indicator forms below the candlesticks or price bars, the sentiment in the market is believed to be altering from bearish to bullish, hence an exit or take profit is advised.
Sell Trade Example
Fig. 1.1
Free Download
Download the CCI Woodies Forex Scalping Trading Strategy
About The Trading Indicators
The DoubleCCI_Woodies.ex4 custom indicator is designed on two CCI (commodity channel index), hence it is a momentum indicator.
As such the indicator is tailored to allow traders spot when a market is overbought or oversold, and it is expected to see a directional reversal and retracement.
The ChandelierStops_v1 custom indicator is a modified version of the Chande & Kroll’s Stop indicator.
The indicator is enhanced to follow trend as well as spot stop loss for a buy and sell position via the use of variation on directional movement.