I was visiting a Forex Factory tread that mentioned a system based on
CCI. The guy who made this thread goes by the name Forexcube, and he
put in there a lot of information on CCI and damn near every system
based off of this indicator. His system is called the TASAYC (Trade As
Simple As You Can) System, and it's really just CCI (14), EMA (200), two
Bollenger Bands (both 20, with deviations 2 and 3) and Daily Pivots.
From
his record of trades he keeps on the first post, he seems to have
made a very profitable system using these basic indicators. I try it out
for a day, and found very little that I didn't already know. But he did
do something with CCI that I thought was kind of bold. Usually I would
trade using CCI's Zero Level, but for Forexcube he would trade using the
100, -100, 200, and -200 levels as entry and exit points. I wasn't
quite sure how he could pull that off (I've tried those levels with
little or no success in the past), but I now I think I have an idea as to how to
trade from those levels.
The Daily Pivot indicator used
in his system has a range calculator with it (the range is the
difference between the high of the day and the low of the day) that
displays today's range, yesterdays range, and an average range spanning
30 days. I found that if today's range is relatively the same as
yesterdays and/or the 30 day average, and the CCI is coming up/down from
either a 100 or 200 level, then it would likely continue. Even better
if the price is at a support/resistance level when this pattern occurs.
Example:
Here's the TASAYC thread I got this idea from:
http://www.forexfactory.com/showthread.php?t=325369
