134# Forex Divergence H4 Strategy
Momentum Bands Strategy
CCI Divergence filtered by overbought and oversold and Bollinger bands
Submit by Maximo Trader
Forex Divergence H4 Strategy is a momentum bands strategy based on divergence of Commodity Channel Index oscillator filtered by overbought and oversold (of CCI) and Bollinger Bands. The purpose of this strategy is to look for the best differences that have a high probability of winning. The filter method proposed above described seems quite efficient, clear and simple to implement.
Time Frame 4H or above
Currency Pairs: EUR/USD, GBP/USD, GBP/CAD, EUR/CHF, NZD/USD, NZD/CAD, AUD/JPY, AUD/NZD, USD/JPY, USD/CHF, EUR/JPY, EUR/AUD, EUR/NZD, EUR/CAD, EUR/GBP, NZ/JPY, CHF/JPY, GBP/JPY, Gold and Silver.
Metatrader 4 indicators:
Special indicator (CCI Divergence) setting:
fast ema 12, slow ema 26, signal line sma 9;
overbought and oversold 140, - 140.
Trading rules Forex Divergence H4 Strategy
Buy
Buy arrow, conditions:
If the indicator goes into the zone below -140 and the price touches lower bollinger bands or broke low BB.
Without arrow
when the indicator is below 140 level and form an “u”.
Open an buy position (for the two situations) when the CCI turn above -140 level, at the close of the candle.
Sell
Sell arrow, conditions:
If the indicator goes into the zone above 140 and the price touches upper bollinger bands or broke high BB.
Without arrow
when the indicator is above 140 level and form an “n”.
Open an sell position (for the two situations) when the CCI turn below 140 level, at the close of the candle.
Exit position options:
Take profit whe the CCI is near at opposite level.
Ratio stop loss 1:1.
Initial stop loss 40 or more pips depends by currecy pair.
Note:the two types of entry can also be combined together.
The Bollinger Band filter is optional but to learn this strategy is a mandatory first step.
In the pictures Forex Divergence H4 Strategy
