The CCI trading strategy with support and resistance is most profitable done on a 15 minutes chart timeframe. This scalping strategy uses support and resistance levels in conjunction with CCI to signal the entry points.
The CCI indicator is an oscillator and it is used to determine overbought and oversold levels. For more information about different types of trading indicator you can check this post here.
How to trade with cci indicator in conjunction with support and resistance levels
Timeframes: 15 minutes
Currency Pairs: scalping becomes more profitable when there is volatility in the market. Therefore the best currency pairs to scalp are eur/usd, gbp/usd and usd/jpy . however, you can also try other major pairs to scalp because they have the lowest available spreads.
Trading sessions: scalping is most effective during high volatility trading sessions between 13:00 GMT and 16:00 GMT because it’s over this period that both New York and European markets are open.
Forex Indicator: only CCI with default settings.
1. For starters, look for obvious resistance level on your chart and draw a vertical line.
2. When you see price heading down to a support level to touch the support line, then look at the CCI indicator to see if the market is in an oversold condition.
3. If so there’s a likely chance that the market may bounce up from the support level and go up so place a buy trade.
4. Place you stop loss 5-10 pips below the resistance level.
1. Look for obvious support level on you chart and draw a vertical line.
2. When you see price heading up to a resistance level and touches the resistance line, then look at the CCI indicator to see if the market is in an oversold area.
3. If that’s true then there’s a likely chance that the market might reverse and go down from the resistance level so place a sell trade.
4. Place your stop loss few pips above the support level
If you use this scalping strategies correctly, it can be rewarding. However, i suggest you first practice scalping on a demo account. Otherwise good luck with you trading. Also if you have time to kill, please check these two articles below:
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