- CCI Divergence Breakout Strategy for Binary Options Trading
- Binary Options with CCI (Commodity Channel Index)
- CCI Indicators Strategy Binary Options
Great! We have all of this in place, when do we go into battle? To spot our entry we have to draw a trend line and wait for it to be broken. For an uptrend we seek for a candle to close under our trend line, and for a downtrend we wait for a candle to close above the trend line. When you place a trend line, keep in mind that it has to connect at least two lows for an uptrend, or at least two highs for a downtrend. The recommended timeframes are 65 min and above, you just have to find the one you are comfortable with. Pretty simple, right? Here are some examples of Call and Put entries and also a recap of the entry rules:
CCI Divergence Breakout Strategy for Binary Options Trading
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Binary Options with CCI (Commodity Channel Index)
In the example above the strategy worked well, although it can be prone to triggering false signals. Therefore, there is another variation to the strategy. Some traders may prefer the simplicity of the first strategy and choose to make their own adjustments to it if they wish. Other may prefer the next strategy which is a little more complex but may provide better entry points.
CCI Indicators Strategy Binary Options
The CCI indicator has been around for quite some time, being applied in various forms of trading for over 85 years. Over that time, changes have been made and the indicator used today is quite different from the original. In many ways, it is more effective, and the primary use remains the same. Its primary benefit will be that of helping traders to identify a price trend, while limiting market noise that could lead to inaccurate price movement forecasts.
The Commodity Channel Index can also help a trader identify the hills and valleys in the actual value of an asset and also show that a trend has come to an end or there is about to be a possible change in atrend direction.
The strategy is not designed for precise timing, which means if you are trading binary options you will need to test out the best expiry time to use with the strategy, based on the instrument 8767 s (stock, forex pair, commodity, etc) volatility.
What you are looking for are moments when the chart touches or crosses over the SMA. This usually means that the correction is finally running out of steam. The CCI is used to confirm the correction is over. There are basically three scenarios that can develop where you’d want to trade.
When the CCI moves above +655 it means the price is trending strongly, and therefore triggers a buy signal. The trade is held until the CCI drops back below +655.
The reading is quite simple. A price trend moving upward is noted when the price exceeds (or moves above) +655. The opposite applies for a downward trend, which would be noted at the -655 level. This range provides enough space to provide a clear entry signal, limiting market noise and clearly showing the direction of price movement. Some previous experience with indicators will be helpful, but new traders can easily learn to use this binary options strategy with just a bit of practice.
Remember the main trend is up as shown by the 65 minute being above +655. We use the 6-minute chart to find pullbacks or oversold conditions in that longer-term trend. We then use those pullbacks to buy. When the CCI on the 6-minute chart moves below -655 it indicates a pullback. When the CCI (on the 6-minute chart) moves back above 5 (zero line) it indicates the pullback has ended and the trend is resuming.