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107# CCI, MACD,ZIG ZAG Trading System

Submit By JanusTrader

 

Indicators - Zig-ZagCCI, MACD, Bar Charts or Candle Charts. I prefer Bar

Charts as I find them better to view.

Lot Size - mini lots

Time Frames - 5 Minute, 15 Minute, 30 Minute and sometimes the 1 Hour can

be used. Personally I prefer the 5 Minute and 15 Minute charts.

Description

My system is a trend following system with a strong foundation based on the

psychology of trading. I use the Zig – Zag as a support and resistance. Many

traders avoid using this indicator because it often repaints its last moves, but it is

this repainting that has brought me much success. More on this later.

The sentiment behind the CCI is that a lot of traders use it for entries on the

crosses of the 0 and 100 and -100 levels. I use it on two settings, thereby

combining the purchasing power of two indicators to determine my entry each

time.

 

MACD is used to determine the trend. I love it’s visual appearance as I do not

then have to worry too much about what the trend is. When MACD is above zero,

the trend is up, When MACD is below zero the trend is down.

Chart Setup

Open a 5 or 15 Minute chart.

Confirm that the spread is not more than 4 pips.

Attach the zig zag indicator with a setting of 28,5,3.

Then attach the CCI indicator with a setting of 34 set to close.

Now attach another CCI indicator with a setting of 46. This I would superimpose on

the first CCI indicator. To do this, I would open the navigation bar, search for CCI, left

click on the CCI indicator and drag it into the first CCI indicator window.

Please note that the 100 and -100 levels of the two CCI may confuse you.

 

To solve this problem, use only the level setting of either the 34 CCI or 46 CCI. Simply go to the level setting and delete the 100 and -100 on either of the 34 CCI or the 46 CCI. If you don’t know how to do this or if you are having difficulty, you could also just attach the CCI 34 set to close and CCI 46 set to close on two separate windows. You need though, the two CCI settings. Attach MACD with a setting of 21,89,1 set on close.

CHART SETUP

1. Zig Zag

2. MACD 21,89,1 set on close

3. CCI 34 set on close

4. CCI 46 set on close but superimposed on the same window as CCI 34

System Rules

Long trades

Buy When:

1. The Zig – Zag has formed a low swing point and;

2. Both the CCI 34 and CCI 46 cross the 0 line from below and;

3. MACD 21, 89, 1 is above zero.

4. You could also enter long when both the CCI 34 and 46 cross the 100 level

if conditions 1 – 3 are met .Usually this produces stronger signals. The

crossing above the 0 level and 100 level produce separate trade

opportunities.

5. Aim to take profit of not more than 5 pips.

6. Exit when your take profit of 5 pips is met or when the swing point of the Zig

- Zag is high or whichever one comes first.

Short Trades

Sell When

1. The Zig – Zag forms a high swing point and;

2. Both the CCI 34 and 46 cross the 0 line from above and;

3. MACD 21,89 1 is below zero.

4. You can also sell when both the CCI 34 and 46 cross the -100 level if

conditions 1 – 3 are met. Usually this produces stronger signals. The

crossing of the 0 level and -100 level produce separate trade

opportunities.

5. Aim to take profit of not more than 5 pips.

6. Exit when your take profit of 5 pips is met or when the swing point of the

Zig - Zag is low or whichever one comes first. .


5 Min EUR/USD Chart

1. Zig- Zag 28,5,3 at low swing point

2. Macd 21,89,1 set on close above zero

3 CCI 34 and CCI 46 cross 0 from below. Note that it also crossed 100 from

below almost at the same time. The crossing of 0 from below is enough of a

signal on its own and so too the cross of 100 from below is a signal on its own.

However for CCI 34 and CCI 46 to cross 0 and 100 from below almost at the

same time is a very good signal.

4. Go long at 1.48906 and take profit at 1.48950 (5 pips away -see 5.on chart)

5. Price went far in our favor at 6; but don’t be greedy.

 

 

5 Min EUR/USD Chart.

1. Low swing point of Zig- Zag

2. Macd 21,89,1 above zero.

3. CCI 34 and CCI 46 cross 0 from below and later crossed 100 from below. The

cross of either 0 from below or 100 from below or the cross of both 0 and 100 is

needed for a long trade.

4. Enter long at 1.49515

5. Take profit at 1.49560 which is 5 pips away.

6. Once again price went far in our favor at point 6.

Don’t be greedy.

 

5 Min GBP/USD chart.

1. High swing point of Zig- Zag

2. Macd 21,89,1 below 0

3. CCI 34 and CCI 46 cross 0 from above .Notice that the one of the CCI did not

cross -100, but not to worry, you are safe since the two CCI crossed 0 from

above.

4. Go short at 1.67928

5. Take profit at 1.67870

6. Price went far in our favor at point 6

Don’t be greedy

 

5 Min AUD/USD chart

1. High swing point of Zig-Zag

2. Macd 21,89,1 below 0

3. CCI 34 and 46 cross 0 from above then went to cross -100 from above

4. Go short at 0.91818

5. Take profit at 0.91760

6. Price went far in our favor

Don’t be greedy

 

 

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Comments: 1
  • #1

    Stephen (Thursday, 11 February 2016 03:44)

    May I know where your stop would be?

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