Binary options trading using
the explosion of the CCI
Binary
options trading using the explosion of the CCI. This approach
capitalizes on trend momentum and has been fine-tuned for shorter
time frames, making adjustments to indicators and introducing a
6-period moving average. Its versatility extends to scalping on
240-minute, daily, and weekly candlesticks.
Key
Components of the Strategy
Time
frames: 1 min, 5 min, 15 min.
Applicable
to any currency pair.
Indicators utilized:
Commodity
Channel Index (CCI) with a 21-period setting.
Buy
Signal: CCI crossing above +50; Sell Signal: CCI crossing below -50.
Simple
Moving Average (SMA) with a 21-period setting for high and low
prices.
Moving
Average (MA) with a 6-period setting for median values.
Strategy
rules
Buy
Signal
Criteria:
CCI crosses above +50, current price above 21-period high SMA, median
of last 6 periods above 21-period high SMA.
Action:
Initiate a CALL (up) binary option trade.
Consider
re-entry with same conditions upon formation and rebound of bullish
Doji, bullish Hammer, or Dragonfly Doji off the moving average.
Sell Signal
Criteria:
CCI crosses below -50, current price below 21-period low SMA, median
of last 6 periods below 21-period low SMA.
Action:
Enter a PUT (down) binary option trade.
Re-enter
under identical conditions when a bearish Doji, bearish Hammer, or
Graveston Doji forms and bounces off the moving average.
Note: Avoid trading when
price significantly deviates from the 6-day average.
Expiry
Time
Tailor
expiry time according to the trading timeframe, typically 1 to 5
candles.
Money
Management
Implement
sound risk management practices, such as risking only a small portion
of trading capital per trade or employing the Masaniello 30-step
method.
Confirmation
Use
the moving average (MA) as an additional confirmation tool to
validate signals and enhance strategy reliability.
Conclusion
This
strategy offers various entries into the market, initially focusing on
specific candlestick formations like bullish/bearish Hammers, then
expanding to include Dojis. It is best suited for time frames of 1 minute and above.
Scalping on Single Daily
Candle
The
strategy outlined above is adaptable for single candle scalping, with
stops set at previous swing highs/lows and a target profit-to-stop
loss ratio of 1:1.
Caution:
In daily time frames, the moving average serves solely as a re-entry
filter for defined candlestick formations. Avoid entering trades when
momentum is declining.
Examples
