9# Breakout with CCI Trading System

Submit by joy22

Time frame: 15 or higher.

Pairs: all.


CCI 20 (Commodity Channel Index, Period 20, Typical Price)

The Wave (EMA34 High, EMA34 Close, EMA34 Low)



Breakot With CCI
Breakot With CCI

Trend definition:


UP Trend
UP Trend

Uptrend: The price has already crossed the Wave upward and the price is above the Wavebottom.


Down Trend
Down Trend

The market is trending down if the price is below the the Wave-top.



Down Trend
Down Trend

The market is trending down if the price is below the the Wave-top.



Long Entry

Price was above the Wave for some time.

(above the Wave-top)

● Price entered the Wave.

Price was above the Wave and then crossed the Wave-top downward.

● CCI crossed +100 line upward; A POSSIBLE LONG ENTRY SIGNAL on the next candle open.


This is a good signal to go long on the next candle open. But be careful...

● “Five bars check” rule.

Check that CCI was below the +100 line for at least five bars before the cross.

● Check that the market is trending up now.

Check that the price is above the Wave-bottom as with the first rule.

● Buy now!

If all above is filled, buy as new candle opens.

Short entry

● CCI crossed the -100 line downward.

Look at CCI when the candle has closed. Was it above the -100 line for at least five bars? Is it

below the -100 line now? If yes, continue to the next step. We have to check market conditions.

● Is price trending down?

Is price below the Wave-top? (Stick with our definition! Don't let your feeling or intuition to define the trend! Trend definition is a mechanical task here, although sometimes counterintuitive.) If yes, go to the next step.

● Do you see a valid swing pattern?

Train your eyes on the first few trades and you will see the swing pattern subconsciously without reviewing the rules. Review: price was below the Wave and then entered the Wave (in other words, price crossed the Wave-bottom upward

● Sell now!

And prepare your exit targets...


Exit rule

Place the profit target at Fibo Pivot;

Stop Loss at level meddle wave.




Share your opinion, can help everyone to understand the forex strategy.

Comments: 2
  • #2

    Ibrahim (Saturday, 04 April 2020 00:09)

    Do you still use this strategy. Exit rule is not clear to me. Can I ask some questions?

  • #1

    Erick (Tuesday, 22 May 2018)

    This strategy is very similar to Jake Bernstein's "Stochastic POP" from 25 years ago !!!
    The premise is when over bought, buy and vice versa. I've made more money on my demo account these several months than any other strategy in my arsenal . Of course I've added several more filters such as Trend and fractals.If one really understands this indicator they could do very well . This goes against the grain because people think over bought they sell, oh contraire !!

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