13# CCI Explosion for Binary Options

CCI Explosion for Binary is a trend momentum strategy. In this update we have adapted the basic strategy to low time frame binary options trading, so I have made some changes in the setting and added a 6 period moving average. This strategy is also suitable for scalping on 240 min, daily and weekly candles.

Setup Strategy

Time Frame 1 min, 5 min, 15 min.

Currency pairs: any.

Indicators:

Commodity Channel Index (CCI) - 21 periods

Buy Signal: CCI crosses above +50 level

Sell Signal: CCI crosses below -50 level

Simple Moving Average (SMA) - 21 periods, high

Simple Moving Average (SMA) - 21 periods, low

Moving Average (MA) - 6 periods, median.

Strategy Rules

Buy Signal

When CCI crosses above the +50 level AND the current price is above the 21-period high SMA AND the media of the last 6 periods is also above the 21-period high SMA, consider a potential bullish trend.

Enter a CALL (up) binary option trade.

Re-enter with the same conditions when a bullish Doji, bullish Hammer or Dragonfly doji forms and bounces off the moving average.

Sell Signal

When CCI crosses below the -50 level AND the current price is below the 21-period low SMA AND the median of the last 6 periods is also below the 21-period low SMA, consider a potential bearish trend.

Enter a PUT (down) binary option trade.

Re-enter with the same conditions when a bearish Doji, bearish Hammer or Graveston doji forms and bounces off the moving average.

Note: When the price is far from the 6-day average do not enter.

Expiry Time

Set the expiry time of the binary option trade based on the timeframe you are trading. 1 to 5 candles.

Money Management

Implement proper risk management techniques such as risking only a small percentage of your trading capital per trade or Masaniello 30 step.

Confirmation

Use the moving average (MA) as an additional confirmation tool to filter out false signals and increase the reliability of the strategy.

Conclusion the strategy provides many types of entry onto the market. Initially you could concentrate only on one type, for example only with Hammer bullish/bearish, then also add the doji.
The basic setup is recommended for time frames of 1 minute and above.

This strategy with the conditions defined above can also be applied for single candle scalping.
The stop is on the previous swing high/low.
The target profit ratio stop loss 1:1.

Please note: On the daily time frame the mobie average is only used to re-enter the defined Candlestick formations.

Avoid entering when the momentum is decreasing.

Examples

Submit by Joy22 04/07/2013

Markets:Forex, Stocks, CFD, Futures,

Time Frame 30 or higher max 240 min

Time Frame 30 min= Expires time 180 min-240 min;

Time Frame 60 min= Expires time 600 min;

Time Frame 240 min = Expires Time 1440 min.

The Metatrader Indicators of CCI rnp Binary Options Strategy One Touch:

CCI rnp (period 14, levels 190, -190);

KG Targets Points.

 Rules CCI rnp Binary Options Strategy One Touch

 Buy

1) wait that the value of the CCI rnp reaches or breaks the level of -190;

2) buy the first buy signal the CCI rnp (when it turns red).

Sell

1) wait that the value of the CCI rnp reaches or breaks the level of 190;

2) sell the first sell signal the CCI rnp (when it turns aqua).

Exit Position at first KG Targets levels in direction of the trade, into the expires time.

 Question:

What is the best time expires for this Binary strategy?

Answer:

I think the higher the time frame, the greater the chance of winning, but being a Binary strategy with a fast profit the differences are minimal.

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