Сommodity Сhannel Index (CCI) - no flat, yes profit

• VFX Blog
• Strategies

Hello, trader! We continue to use how to make on binary options strategies when trading with the trend. We will determine when to open an option by the trend dynamics and the Commodity Channel Index indicator.

Strategy characteristics

Type: Trend.

Timeframe: Any in the range M1-M5. In our case, M1 is used, but with increasing period of analysis, the accuracy of the signal an increasing.

Trading asset: Any options trading signals. The main requirement is a fixed (2-3 points) spread and no hidden fees.

Trading time: All Forex trading sessions.

Percentage premium option: Not less than 70-75%.

Used indicators

The strategy uses two technical indicators:

• Alligator. Bill Williams’s indicator will determine the current trend or its absence.  It is a three Moving Average with a different bias relative to the current price. Lateral movement of all lines indicates the absence of a trend, we remain outside the automatic binary signals.

• Commodity Channel Index (CCI). A technical indicator that is available in all binary option live stream, showing how much the price has deviated from its average range for a specified number of periods. If the price deviated more than the range (+100/-100 levels), we expect a trend reversal. This will be the first confirmation of the Alligator signal. Read more about the indicator on the blog.

After installing the tools, the terminal's working window looks like this:

Binary options signals:

• CALL (UP) - option.  The price is above Alligator, which turned up. CCI is above zero levels, confirming the uptrend.
• PUT (DOWN) - option. Opposite conditions: all Alligator lines turned down. The price is below all Moving Averages, on the downtrend oscillator below the zero levels.

Open a trade on the next candle after binary signals. The time of expiration of options has to be not less than 5-7 minutes even if as a working timeframe it is chosen of minute, as in our video.

Recommendations about use …

• The value of the periods for the cryptocurrency market should be selected individually for each asset, taking into account the average volatility, working timeframe, a trading strategy (scalping, swing trading, medium-or long - term trades) and depending on the comfortable trading style of the trader.

• You can significantly improve the result of the strategy if you use trading computers with multiple monitors. For example, periods M5-M15 can give a hidden signal about a trend change, which is then confirmed by trade on M1.

• During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary options software free!

Summarize…

Despite the positive statistics and winning binary signals on Forex and cryptocurrency, do not forget that the CCI indicator settings were originally designed for the cyclical stock and futures market, where regular periods of price changes from maximum a minimum are easily determined. For high volatility, this means that you need to look for at least one additional confirmation with trending instruments such as Alligator, which calculate market behavior using other methods.