Traders are always on the lookout for changes in the currency market, coupled with knowing the strength of the trend in its current state, the Gentor CCI forex trading strategy is able to do just that.
The general idea behind the indicator is for faster respond to change in trend direction, thus allowing the trader gain from such move.
Chart Setup
MetaTrader4 Indicators: GentorCCI.ex4 (Input Variable modified; EMA=54), 40 EMA.ex4, RainbowMMA_11.ex4 (default setting))
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: Any pair
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy order if the following indicator or chart pattern gets displayed:
- If the red line of the 40 EMA crosses the gold line of the RainbowMMA_11 custom indicator bottom up with price trading somewhat above (refer to Fig. 1.0), price is said to be pressured higher i.e. a signal to go long on the pair of interest.
- If the green horizontal bar of the GentorCCI.ex4 custom indicator forms on the 0.00 level as depicted on Fig. 1.0, the overall sentiment in the market is said to be bullish, hence a trigger to go long on the fx pair 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 true:
- If the red line of the 40 EMA crosses the gold line of the RainbowMMA_11 custom indicator top downward, it is a pointer to possible weaning bulls power, hence an exit or take profit is advised.
- If the horizontal bar of the GentorCCI.ex4 custom indicator that sits on the 0.00 level turns yellow during a buy signal as seen on Fig. 1.0, it is a trigger to exit or take profit at once.
Sell Trade Example
Enter a sell if the following rules or conditions take precedence:
- If the red line of the 40 EMA crosses the gold line of the RainbowMMA_11 custom indicator top downward with price trading somewhat below as illustrated on Fig. 1.1, price is said to be pushed lower i.e. a signal to sell the pair of interest.
- If the yellow horizontal bar of the GentorCCI.ex4 custom indicator forms on the 0.00 level as seen on Fig. 1.1, the general sentiment in the market is said to be bearish, hence a trigger to go short on the designated forex pair.
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 takes center stage:
- If the red line of the 40 EMA crosses the gold line of the RainbowMMA_11 custom indicator bottom up (refer to Fig. 1.1), it is a pointer to possible halting bears power, hence an exit or take profit is recommended.
- If the horizontal bar of the GentorCCI.ex4 custom indicator that sits on the 0.00 level turns green during a sell trigger, it is a trigger to exit or take profit without delay.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The RainbowMMA_11.ex4 is the eleventh GMMA forex series of eleven technical indicators largely dependent on the Guppy multi moving average.
The 40 EMA is an exponential moving average that has its period set at 40 and reduces the lag by adding more weight to recent price.
The GentorCCI.ex4 is a modified version of the Commodity Channel Index (CCI) indicator.
The indicator offers us clues on changes in the direction of the market, and the strength of the trend.
The indicator is made up of two components, the fast CCI and the slow CCI.