This trading system is very simple and can be applied during any trading session. It can also be used to trade during trend and ranging periods in any currency pair in the market. For trending signals, only pick trades in line with the general trend. For reversal pick signals that form on resistance/support or demand/supply zones.

 

Indicator

Currency Strength Meter (to detect the best pair to select base on weakness and strength of currencies)

Bollinger Band (20,2)

Commodity Channel Index (14 period)

 

Rules for Long Entry

Wait for CCI to go below -100 reading or lower which represents oversold market condition.

Make sure candlestick(price) is currently at the extreme low bollinger band at this point.

Then wait for CCI to go above -100 reading once again with a price action confirmation (bullish candle, bullish engulf or bullish pinbar).

At these point the current candlestick(price) that opens next should be away from the low bollinger band.

Launch buy trade immediately these set-ups are met.

USDCADH1

 

 

Rules for Short Entry

Wait for CCI to go above 100 or higher which represents overbought market condition.

Make sure candlestick(price) is currently at the extreme high Bollinger band at this point.

Then wait for CCI to go below 100 once again with a price action confirmation (bullish candle, bullish engulf or bullish pinbar).

At these point the current candlestick(price) that opens next should be away from the high bollinger band.

Launch buy trade immediately these set-ups are met.

AUDUSDH1

 

Setting Stop Loss:

Use support level or swing low for buy trades.

Use resistance level or swing high for sell trades.

Or

Use the previous candle high for sell trades.

Use the previous candle low for buy trades.

 

Setting Take Profit:

Use times 2 of your stop loss so that risk to reward is 1:2.

Aim for next resistance or support.

 

 

 

 

 

 

 

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