hey guys welcome back to another episode in this video we will be going through our high

probability cci moving average crossover trading strategy in depth and how we use it in combination
with price action if you want more videos more often please smash the like button subscribe and
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important point before we start everything we discuss in this video can be used for currency trading
stock trading and crypto because price action stays relatively consistent across different assets so
we're going to go very in depth in this video cci moving average crossover trading strategy the logic
for cci moving average crossover trading strategy is simple because we are combining both a trend
following indicator as well as an oversold overbought indicator moving averages can show you the
approximate trend and change of trend when the crossover occurs cci is an oscillator that shows you
whether the market is oversold or overbought cci moving average crossover is one of the most
effective price action strategies you can use in the market this system allowing traders to determine
if they want to enter or exit a trade refrain from taking a trade or add to an existing position moving
average crossover because moving averages are a lagging indicator the crossover technique may not
capture exact tops and bottoms but it can help you identify the bulk of a trend the moving average
crossover system helps to answer these three questions first which direction might the price be
trending second where might be a potential entry point for a trend trade third when might a trend
be ending or reversing all you have to do is plop on a couple of moving averages on your chart and
wait for a crossover if the moving averages cross over one another it could signal that the trend is
about to change soon thereby giving you the chance to get a better entry by having a better entry
you have the chance to bag more pips let's take another look at this one hour chart of euro united
states dollar to help explain moving average crossover trading from around four days the pair was in
a nice uptrend it topped out at around 1.2 before slowly heading down in the 1st of september we
see that the 10 ema crossed below the 30 ema and what happened next the nice downtrend if you
had shorted at the crossover of the moving averages you would have made yourself more of a
thousand pips of course not every trade will be a thousand pip winner 100 pip winner or even a 10
pip winner one thing to take note of with a crossover system is that while they work beautifully in a
volatile under trending environment they don't work so well when price is ranging you will get hit
with tons of crossover signals and you could find yourself getting stopped out multiple times before
you catch a trend again in summary moving average crossovers are helpful in identifying when a
trend might be emerging or when a trend might be ending the crossover system offers specific
triggers for potential entry and exit points these triggers should be confirmed by chart pattern and
indicator indicators assist traders in confirming high probability trades depending on the trading plan
and strategy traders will have one or two indicators that complement the trading strategy do not fall
into the trap of over complicating the analysis by adding multiple indicators to a single chart keep
the analysis clean and simple and easy to view at a glance using the cci is a trend indicator the
commodity channel indexer cci indicator is a momentum based oscillator used to help determine
when an investment vehicle is reaching a condition of being overbought or oversold developed by
donald lambert this technical indicator assesses price trend direction and strength allowing traders
to determine if they want to enter or exit a trade refrain from taking a trade or add to an existing
position in this way the indicator can be used to provide trade signals when it acts in a certain way
the cci trend indicator can be used to signal the strength of the trend when a trend exhibits strong
momentum there is a high probability that price will continue rising or falling this means you can
expect price to continue in the same direction so the next time you want to know how strong the
trend of a security is simply look at what the cci indicator is suggesting using the cci as a trend
indicator is ideal when combined with other trend indicators such as moving averages this can help
you to pick bottoms in a rally or tops in a decline in other words using the cci as a trend indicator you
can time your entries within a trend how can you use the cci trend indicator in this example you
have the 30 and 10 period exponential moving average your ema applied to the price chart when the
short-term exponential moving average is above the long-term exponential moving average it signals
an uptrend now using the cci indicator you can see that the bullish momentum is renewed every
time the cci falls below the minus 100 level when the cci indicator starts to rise back above minus
100 the bullish trend resumes thus giving traders a good level to enter the trend using the cci as a
trend indicator can help you to time your entries into a trend instead of buying at the top or selling
at the bottom which usually happens with most traders the cci index can signal to you when the best
time is to enter a trend cci moving average crossover trading strategy details you can use any time
frame but consider that amount of noise on lower time frames consider using 15 minute charts and
above as mentioned in the title of this video we are going to use only two trading indicators first two
exponential moving averages set at thirty and ten we use a fast and slow exponential moving
average so we can see the potential trend change earlier second cci or commodity channel index
with the setting of 7 which is much lower than the standard setting of 14. note do not add any other
technical indicators to the mix for this strategy the only addition will be the use of candlestick
patterns of individual candlesticks trading strategy rules please ensure you fully test the rules so you
can do them without thinking selling rules or short position first 10 ema crosses the 30 ema to the
downside second wait for price to rally back to the moving averages third the cci above the 100 level
and start crossed below it if those three points line up you have a cell setup happening and to
confirm the trading signal you may want to use a price action entry such as a bearish reversal pattern
once you enter the trade you can set an initial stop loss above the recent high buying rules or long
position first 10 ema crosses the 30 ema to the upside second wait for price to retrace back to the
moving averages third the cci below the minus 100 level and start to rise back above it here are
other examples of cci moving average crossover trading strategy [Music] [Music] do [Music] so
[Music] [Music] so [Music] [Applause] [Music] so cci moving average crossover is one of the most
effective price action strategies you can use in the market this system allowing traders to determine
if they want to enter or exit a trade refrain from taking a trade or add to an existing position as
always if you learn something new or if you want more videos more often make sure you subscribe
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