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CCI's
Good morning all.
today I will speak a bit about CCI's and how you can use them to help identify trend direction, overbought & oversold levels and how to use the trigger to get you into some great trades.
On a 60m chart I use a 21, an 84 and a 5 as my trigger.
By using all these in conjunction with one another you only really need to look at the one chart. However, for novices starting with minimal stakes the stop losses can be rather large so we use a 5m chart for entry.
This 5m chart has a 63 and a 4 CCI as my trigger.
On all CCI's we use a 150 and 200 level to show the overbought/oversold regions. If the price is between these levels it's dangerous to trade so we are always looking for long plays IF the 21/84 are above 0.0 and below 150 or short plays IF the 21/84 are below 0.0 and above -150.
The 21CCI is pretty much a measurement of where the price is in relation to the 20 moving average, with the 0.0 centre line representing that 20 moving average.
It works very much like a MACD or a Stochastic or an RSI and is a momentum indicator.
The 84CCI on the 60m chart is my 4hr 21CCI (21 x 4) and novices should always follow the direction of this indicator when taking a trade.
If you try to outsmart this CCI you will often come unstuck as retracements against the trend can be unpredictable at times, so bear that in mind and play WITH the trend.
My Trigger on the 60m chart is the 5CCI which is approximate to the 15m 21CCI giving a 15m entry on a 60m chart following a 4hr trend.
Once this trigger agrees with the 21/84 that's when we switch to the 5m chart for an entry.
The 5m Chart has a 63 which is my 15m trend (same as 60m trigger) and 4 which is my trigger. This 4 is my 1m 21CCI
Therefore, with the averages as they are, going up to 4hrs, this strategy allows you to play a 4hr chart set-up with a 1m entry just by looking at 2 charts.
It's very powerful but must be treated with respect. Not every cross of the 0.0 is a valid signal and not every signal on the trigger is valid.
I will show you how to use these in more detail in the lesson about set-ups and entries but for now just take these CCI's and have a play.
Notice how the CCI crosses and the price moves accordingly.
Next up is Pivots
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I'm now sending trading notes out twice a day with videos too. Have a look HERE.
There's one set at 6:30 UK time for London and one at 12:00 for U.S session, plus I will send a summary video after each session 
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