CCI Divergence BB Forex Trading Strategy


You can now download the CCI Divergence BB Forex Trading Strategy for free on AtoZ Markets indicators gallery.

This strategy is based on reading the market correctly on a fresh trend and entering on retracements based on the CCI and Bollinger band indicator present withing the trading strategy.

Knowing that the CCI tends to hover around the +100 or -100 on a trending market environment, we will be looking for a condition wherein it pierces over these figures indicating a probable start of a fresh trend or momentum. This should then be followed by a hover around this area, then a retrace to the zero levels. The retrace should then be our entry point as this could be the area where the price would resume the trend.

Forex Indicators:

  • 5 period SMA set to High
  • 5 Period SMA set to Low
  • Bollinger Bands
  • The Fibonacci Pivots THV Indicator

Timeframe: 1-hour chart and above

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Currency Pair: any

Trading Session: any

How to trade with CCI Divergence BB Forex Trading Strategy?

Buy Trade Rules.

  • If the SMMA channel is higher than the middle Bollinger Band, the market is in an upward trend.
  • It can be seen on a 4-hour chart.
  • Take a look at the chart for 30 minutes and wait for the price of support to reach a certain area.
  • If there is no price action pattern to trade, you can check to see if Price and the CCI/BB/SMMA windows on the 30-minute time frame are diverging.
  • If any of the above criteria are met, verify that there is high volume and that the Volume bar has formed consecutively or significantly higher peaks.
  • These conditions must be met before you can enter a new buy position.
  • Stop loss must not be lower than the swing low.
  • Track your stop by using the SMMA channel, or the middle Bollinger Band.
  • You can also manually exit when the Bollinger Band of the CCI starts to contract.

Sell Trade Entry Rules 

  • If the SMMA channel is lower than the Middle Bollinger Band then the market may be in a downtrend.
  • The trend must be determined. Refer to the 4-hour chart.
  • Take a look at the chart for 30 minutes and wait for the price of the Resistance area to reach it.
  • If there are not price action patterns that you can trade, then check to see if there's a divergence between Price and CCI/BB/SMMA on the 30-minute time frame.
  • If any of the above criteria are met, verify that there is high volume and that the Volume bar has formed consecutively or significantly higher peaks.
  • These conditions must be met before you can enter a new trading position.
  • Stop loss must always be placed at the swing high.
  • You can trail your stop by using the SMMA channel, middle Bollinger Band or both.
  • Manual exit can also be helpful. Refer to the Bollinger Band in the CCI (first indicator windows) to see when it contracts.

How to download and install an indicator?

In order to install the indicator on your MT4 platform, you need to follow these steps:

  1. Click on the “Download Indicator” button located at the bottom of the screen.
  2. Save the file to your computer.
  3. Extract and move the files into the MT4>Indicator folder of the MetaTrader4 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. And select the “CCI Divergence BB Forex Trading Strategy” template to apply it on the chart.

Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.

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