9# Breakout with CCI Trading System

Submit by joy22

Time frame: 15 or higher.

Pairs: all.

Indicators:

CCI 20 (Commodity Channel Index, Period 20, Typical Price)

The Wave (EMA34 High, EMA34 Close, EMA34 Low)

Trend definition:

Uptrend: The price has already crossed the Wave upward and the price is above the Wavebottom.

The market is trending down if the price is below the the Wave-top.

Long Entry

Price was above the Wave for some time.

(above the Wave-top)

● Price entered the Wave.

Price was above the Wave and then crossed the Wave-top downward.

● CCI crossed +100 line upward; A POSSIBLE LONG ENTRY SIGNAL on the next candle open.

This is a good signal to go long on the next candle open. But be careful...

● “Five bars check” rule.

Check that CCI was below the +100 line for at least five bars before the cross.

● Check that the market is trending up now.

Check that the price is above the Wave-bottom as with the first rule.

● Buy now!

If all above is filled, buy as new candle opens.

Short entry

● CCI crossed the -100 line downward.

Look at CCI when the candle has closed. Was it above the -100 line for at least five bars? Is it

below the -100 line now? If yes, continue to the next step. We have to check market conditions.

● Is price trending down?

Is price below the Wave-top? (Stick with our definition! Don't let your feeling or intuition to define the trend! Trend definition is a mechanical task here, although sometimes counterintuitive.) If yes, go to the next step.

● Do you see a valid swing pattern?

Train your eyes on the first few trades and you will see the swing pattern subconsciously without reviewing the rules. Review: price was below the Wave and then entered the Wave (in other words, price crossed the Wave-bottom upward