7# Trading Strategy Using CCI Stochastic and GMMA

Submit by Dimitri

Overview: This trading strategy combines the CCI Stochastic Oscillator and the Guppy Multiple Moving Averages (GMMA) to identify potential entry and exit points in the market. The CCI Stochastic helps in recognizing overbought and oversold conditions, while the GMMA identifies the prevailing trend and its strength. Together, they provide a comprehensive view of both momentum and trend direction.

Trading Strategy Using CCI Stochastic and GMMA
Trading Strategy Using CCI Stochastic and GMMA

Setup Strategy

Time frame 15 minute or higher.

Currency pairs: major, minor indices, gold, oil.

1. Indicators Used:

 

  • CCI Stochastic Oscillator:

    • CCI Period: 28

    • Stochastic Period: 28

    • Stochastic Smooth K: 3

    • Stochastic Smooth D: 3

    • Overbought Level: 80

    • Oversold Level: 20

  • GMMA (Guppy Multiple Moving Averages):

    • Short-term EMAs: 3, 5, 8, 10, 12, 15 periods

    • Long-term EMAs: 30, 35, 40, 45, 50, 60 periods

2. Entry Rules:

 

  • Bullish Entry:

    • The CCI Stochastic (either %K or %D depending on the settings) crosses above the oversold level (20).

    • Confirmed by the short-term EMAs of GMMA crossing above the long-term EMAs, indicating the beginning of an uptrend.

    • Important! The price candle must close above the aqua line and the brown line. the color of candle muste be green.

    • If these conditions are met, a buy signal is generated.

Trading Strategy Using CCI Stochastic and GMMA
Trading Strategy Using CCI Stochastic and GMMA
  • Bearish Entry:

    • The CCI Stochastic moving average crosses below the overbought level (80).

    • Confirmed by the short-term EMAs of GMMA crossing below the long-term EMAs, indicating the beginning of a downtrend.

    • Important! The price candle must close below the aqua line and the brown line, the color of candle muste be red.

    • If these conditions are met, a sell signal is generated.

Trading Strategy Using CCI Stochastic and GMMA
Trading Strategy Using CCI Stochastic and GMMA

3. Exit Rules:

  • Stop loss:

    • Price below above the previous swing high/low.

       

  • Profit Target: Ratio Stop loss 1:1.1 to 1:1,2.

Conclusion: This strategy is designed to capture trades aligned with the prevailing trend, confirmed by both momentum oscillations and trend strength. It is particularly useful in trending markets, where it aims to maximize gains by staying in trades as long as the trend remains strong.

 

The strong point of this system is being able to filter signals when the momentum within a trend changes. Very important because it generates a profitability between 60 and 70%, remarkable for a trend following system.

Trading Strategy Using CCI Stochastic and GMMA
Trading Strategy Using CCI Stochastic and GMMA
Trading Strategy Using CCI Stochastic and GMMA
Trading Strategy Using CCI Stochastic and GMMA

7# MACD and CCI Trading System

MACD, CCI and Zig Zag

Submitted by staff ForexStrategiesresources

 

Chart Setup:

Zig Zag;

MACD 21, 89,1; set on close

CCI 34 set on close

CCI 46 Set on close but superimposed at the same window as CCI 34.

Sistem Rules:

Enter long position:

 

  1. The Zig Zag has formed a low swing point and;

  2. Both the CCI 34 and CCI 46 cross the zero line below and;

  3. MACD is above zero;

  4. you coul also enter when both CCI 34 and 46 cross the 100 level if the condition 1 and 3 are met

  5. Aim to take profit of not more than 5 pips (TF 5) 8 pips (TF15) on EUR/USD

  6. Exit on take profit or when the swing point of the Zig Zag is high or wichewer one comes first.

Enter short position

1) The Zig Zag has formed a high swing point and

  1. Both the CCI 34 and CCI 46 cross the zero line above and;

  2. MACD is below zero

  3. you coul also enter when both CCI 34 and 46 cross the 100 level if the condition 1 and 3 are met

  4. Aim to take profit of not more than 5 pips (TF 5) 8 pips (TF15) on EUR/USD

  5. Exit on take profit or when the swing point of the Zig Zag is low or wichewer one comes first.



In this example below, seven wins and two losses

Trading system CCI and MACD
Templete MT4 cci and macd.rar
compressed file archive 1.2 KB

 

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