Trader DNA
Learn about the CCI Cobra trading strategy using short-term time frames with two long-term CCI and an exponential moving average to determine entry points. It’s a momentum-based oscillator used to signal the strength of a trend. For scalping and intraday trading, wait for the market to become active and move decisively within the 8 A.M. Eastern Standard Time to noon overlap of the New York and London exchanges. Swing traders can enter and exit trades without waiting for high market volatility. To enter a trade, wait for the 34 period CCI to cross the zero line, while the 100 period CCI is on the correct side of the zero line and the price is on the correct side of the moving average and B Band Stops.
How to Use the CCI Cobra Trading Strategy
Introduction to CCI Cobra Trading Strategy
The CCI Cobra trading strategy is a non-repaint system that provides accurate signals, making it suitable for trading in different markets such as Forex, stocks, commodities, and cryptocurrencies. This strategy uses the CCI zero line to identify entry points and assess the momentum of prices. In this article, we will examine the step-by-step process of how to use the CCI Cobra trading strategy.
Understanding the CCI Zero Line
Before diving into the specifics of the CCI Cobra trading strategy, it is important to understand the CCI zero line. The CCI or Commodity Channel Index is a momentum-based oscillator that can determine whether a market is overbought or oversold. Developed by Donald Lambert, this indicator assesses price trend direction and strength. When the CCI is above the zero line, it signals an upward momentum, and when the CCI is below the zero line, it signals a downward momentum. The CCI Cobra or CCI zero line cross trading system uses this change of direction as its entry point.
Chart Configuration
To use the CCI Cobra trading strategy, you need to configure the chart with three windows. The first window should contain your favorite market, combined with a 34-period exponential moving average and B-Band stops indicator. The second window should contain a 100-period CCI, while the third window should contain a 34-period CCI.
Adding the Indicators
To configure the chart, add a 100-period CCI, a 34-period CCI, a 20-period B-Band stops, and a 34-period exponential moving average. Consider using a provided template to avoid any mistakes.
Using CCI as a Trend Strength Indicator
Combining the CCI with other trend indicators such as moving averages and B-Band stops can offer better trading opportunities. The CCI can also indicate trend strength, allowing traders to understand when the price is likely to continue rising or falling. For instance, a rising CCI indicates price momentum and implies that the trend is likely to continue.
Choosing the Right Time and Analyzing Market Volatility
For scalpers and intraday traders, active and moving markets are the best times to trade. The busiest trading hours are during the 8 A.M Eastern Standard Time to noon overlap of the New York and London exchanges. Swing traders, on the other hand, do not need to wait for high market volatility, as trading takes place on the four-hour and daily timeframes.
Waiting for the Zero Line Cross
Traders should wait until the 34-period CCI crosses the zero line while the 100-period CCI is on the correct side of the zero line. Additionally, the price should be on the correct side of the moving average and B-Band stops. Depending on the direction, if the 34-period CCI crosses above the zero line, the 100-period CCI should be above the zero line, and the price should close above the moving average and B-Band stops. If the 34-period CCI crosses below the zero line, the 100-period CCI should be below the zero line, and the price should close below the moving average and B-Band stops.
Entering Your Trade
After confirming that all conditions are met, the trader can enter the market through an order. Once the order is executed, ensure that both the target and stop loss orders are placed.
Conclusion
The CCI Cobra trading strategy provides traders with a non-repaint system that effectively analyzes market movements. The strategy combines different indicators such as the CCI, moving averages, and B-Band stops to determine entry points and confirm the direction of prices. Using this strategy, traders can reap significant profits in different markets such as Forex, stocks, commodities, and cryptocurrencies.
