Stock Bollinger Band + CCI System

Use Exp MA (20) as the Mean (check EMA box next to moving average) Insert CCI indicator into lower study Select Bollinger Band study, set to 20 periods and 2 standard deviations (Terra Nova default)

• •

(

Optional - add a 50 EMA for a trend following moving average )
• •

Best for Stage 1 and Stage 3 Works best when the the bands are spread out wide (gaps)

Class trade: CSCO using 2 Day 2 Min chart

SETUP CHART - Find high time frame support and resistance and take long trades near support and short trades near resistance 1. change the 2 minute chart to a 60 minute chart 2. look for the highest high of the last X number of days on the chart and place a horizontal trend line on the high 3. look for the lowest low of the last X number of days on the chart and place a horizontal trend line on the low (this is the range of the last x number of days visible on the chart) 4. look for pivot lows above the lowest low and pivot highs below the highest high and place horizontal trend lines on those pivot highs and pivot lows ( a pivot low has a higher low to the left and to the right) 5. look for any areas of prior support or prior resistance and place horizontal lines across those candle bodies 6. if the last hour or two are similar highs and lows, draw horizontal lines on the prior hour high and low. ( you can trade the 60 minute channel) 7. look for any vertical trendlines to break (downtrend lines or uptrend lines) on the 60 minute chart and draw them on the chart

8. return the chart to 2 minutes and add the additional criteria to only take the trades when price is near the support and resistance lines

LONG / Buy

AGGRESSIVE ENTRY Low or Close of the previous bar is OUTSIDE of the Lower Band AND this bar’s Close is INSIDE the Lower Band

When the CCI crosses above the oversold (-100) line
THEN Buy the next bar at Open (if higher time frame and cci crosses during the formation of the bar then enter when the line crosses above the oversold (-100) line)

CONSERVATIVE ENTRY Close of the previous bar is OUTSIDE of the Lower Band AND this bar’s Close is INSIDE the Lower Band

When the CCI crosses above the oversold (-100) line
THEN Buy the next bar at Open (if higher time frame and cci crosses during the formation of the bar then enter when the line crosses above the oversold (-100) line)

Use “STOP MARKET” to set stop loss – set at Entry Price - 10¢ ( type in entire amount of stop loss less 10¢ for initial stop ( example enter long at 20.26, type in 20.16 in the stop price box )

Prepare your first Target – set at the Mean, i.e., the Exp MA (20), or Entry+50¢ profit Your next Target is the other extreme of the Higher Band Manage your Trailing Stops ( use .05 trail stop for this exercise )

SHORT / Sell
Short

AGGRESSIVE ENTRY High or Close of the previous bar is OUTSIDE of the Upper Band AND this bar’s Close is INSIDE the Upper band

when the CCI crosses below the overbought (100) line
THEN Sell Short the next bar at Open (if higher time frame and cci crosses during the formation of the bar then enter when the line crosses below the overbought (-100) line) CONSERVATIVE ENTRY Close of the previous bar is OUTSIDE of the Upper Band AND this bar’s Close is INSIDE the Upper band

when the CCI crosses below the overbought (100) line
THEN Sell Short the next bar at Open (if higher time frame and cci crosses during the formation of the bar then enter when the line crosses below the overbought (-100) line) Use “STOP MARKET” to set stop loss – set at Entry + 10¢ ( type in entire amount of stop loss plus 10¢ for initial stop ) ( example enter short at 20.26, type in 20.36 in the stop price box )

2.

Prepare your first Target – set at the Mean, i.e., the Exp MA (20), or Entry+50¢ profit

4. 5.

Your next Target is the other extreme of the Lower Band Manage your Trailing Stops ( use .05 trail stop for this exercise )

Sign up to vote on this title
UsefulNot useful