When Stochastic CCI crosses under/above buy/sell threshold there is a big chance that price will reverse and go in the opposite direction. But this is not enough. Such signal is then filtered by Trend Filter, ATR indicator and/or Exponential Moving Average to exclude false signals. If all conditions are met, the trade signal is drawn.
How to trade with this advisor?
It's super easy. Just set the time frame you prefer to trade, adjust indicator parameters and wait for the signal. When the conditions are met, the buy/sell signal is drawn. This is the time when you should consider opening the position.
The way how you can use this advisor is strongly related to your trading style and preferences. Actually you can make use of this advisor in any of your favourites strategies. We will show you just the one that we like.
- Low timeframe, 1m - 15m
- Open position when a signal appears (direction which signal shows)
- Set TP really close i.e. 4 pips
1st scenario - market goes in your direction:
2nd scenario - market goes in the opposite direction:
- If another signal appears and it's in the same direction as your position, double your position. We suggest adding here another condition that loses position has to be more than x pips i.e 20
- If another signal appears but it's in the opposite direction, open the hedge position and set TP 4 pips or close it by hand with your preferences.
For better results, we suggest combining this indicator with our other indicator Support/Resistance Ribbons & Trend Info
Our indicator displays also information about the trend. There might be 7 states:
● Strong Uptrend
● Uptrend Correction
● Strong Downtrend
● Downtrend Correction
● Wait (it’s hard to determine trend state and more candles are needed)
Configuration of parameters depends on your trading style, trading pair and timeframe. We advise playing around a bit with parameters to find the configuration that suits best for you. We strongly suggest to keep Trend/EMA and ATR filters enabled so false signals will be filtered.
If your trading style is aggressive and prefer to have more trading signals but less accurate you can set the Buy/Sell thresholds for a bit lower values. Also, you can disable EMA and/or ATR filters.
* Manual trading only - source code not available.