BACK TO ARTICLES

1 Hour Bollinger Bands Cci Forex Trading Strategy

The following strategy can be used on any of the intraday charts however it has shown the best results on the 1-hour timeframe and therefore it’s best to use it on the 1-hour chart. It is most suitable on the major Forex pairs, although there are no limitations regarding the Fx pairs it can be applied on.

This Bollinger Bands - CCI strategy is not a day-trading strategy, meaning trades can be held for as long as the conditions for the trade remain true regardless if that means holding the position overnight.

The main goal of the strategy is to profit on the acceleration of trends and their continuation in the direction of the trend in force.

Below is an example of how the strategy looks on the charts:

A long trade as generated by this strategy shown on the EURUSD 1-hour chart

Indicators to be used:

For this strategy, we’ll apply 2 main indicators which are necessary.

  • 1st Bollinger Bands with the custom settings as follows: period - 100 and a standard deviation of 3.
  • 2nd the FxTR Improved CCI (Download for free here) - developed by the Fx Trading Revolution team – this indicator accurately identifies trends and trend reversals.

Additionally, you can also place the Master MACD and the ADX indicators below the chart to help you determine the momentum of the trend. Weak momentum may be an indication that a potential trading opportunity is not good and the trade will not work out well.

While placing the Master MACD and the ADX are not a requirement for this strategy, they are often helpful as both of those are very useful indicators. Avoiding trades where the ADX is below 25 will result in better trading signals and trades with a higher probability for success.

But, the reason for using these two indicators is only to aid the trader in reading the primary indicators and signals of this strategy which are the crossing of the middle line of the Bollinger Band and the CCI. So, just because the ADX not exactly at 25 doesn’t necessarily mean you should avoid taking the trade altogether if, for example, the other conditions look good.

For illustrating the strategy in this article, we have placed both the ADX and the Master MACD indicators.

The trading conditions for the strategy:

Long trade entry: Long trade stop loss: Long trade profit targets and exit rules:

  • Wait for price to cross above the 100 moving average of the Bollinger Band (that is the middle line of the indicator).
  • Wait for the CCI indicator to turn blue (bullish).
  • Initiate long trade.
  • Additionally, it is better if the ADX is above 25 and the Master MACD is showing a bullish trend.

An example of a long trade is shown on the chart below which resulted in a nice profit.

Buy signal indicated with the up arrow on the left and the exit signal shown with the down arrow on the right – USDJPY 1-hour chart

Short entry rule: Short trade Stop Loss: Short trade Profit targets and exit rules:

  • Price is below the middle line of the Bollinger Band.
  • The CCI indicator is bearish (red).
  • Enter a sell position.
  • In addition, look for the ADX to be above 25 and the Master MACD to show a bearish trend as verification of the trading signal.

A short trade generated with this strategy is shown on the chart below.

Sell signal (down arrow on the left) and the exit signal (up arrow on the right) – EURUSD 1-hour chart

General guidelines for the strategy

  • Aim for at least a 1-1 risk-reward or higher - This goes to managing risk properly. It is very important because many potential trading opportunities may look perfect by the setup but may not fulfill this crucial condition (an acceptable risk for the potential reward). Such trades should not be taken despite the bullish signals and the good-looking trade setup.
  • There is no need to exit when the CCI turns neutral as this can only be noise and then the indicator can just turn bullish again. The ADX and the Master MACD can, however, confirm that a change to neutral in the CCI is something more important and that a possible reversal is coming.
  • Avoid closing a trade on small fluctuations of the CCI if sufficient profit has not been achieved yet – This is where the ADX, the Master MACD and just reading the price action can help you in staying with a trade during sideways price action.
  • Obviously, paying attention to support and resistance on larger timeframes will be important when using this strategy as is in most cases when trading Forex. A strong resistance or support on the way to the profit target is a serious obstacle for achieving the target and, therefore, it’s better to avoid taking such trades.
TRADE NOW
BACK TO ARTICLES
Trade With Ultra-Low 0.0 Pips Spreads
✅ XM Zero Account
✅ Zero Re-Quotes & Rejections
✅ 1000+ Trading Instruments
✅ FREE Profitable Trading Signals
✅ Biggest Global FX Broker
>>> TRY FOR FREE NOW <<<
Trading Systems
Improved Moving Averages System
Moving averages are nowadays a standard on every trading platform, but only a few people can actually use them correctly. Our improved Moving Averages System not only eliminates a large number of false signals, but at the same time increases the chance of success several times over, and it is possible to trade even the longest trends the markets have to offer.

Trade With Ultra-Low 0.0 Pips Spreads

✅ XM Zero Account
✅ Zero Re-Quotes & Rejections
✅ 1000+ Trading Instruments
✅ FREE Profitable Trading Signals
✅ Biggest Global FX Broker
>>> TRY FOR FREE NOW <<<
Trading Systems
E+MA+CD - Professional Strategy
E+MA+CD is an exceptionally sophisticated forex trading strategy, whose main strength is the combination of the dynamics of moving averages together with the robustness of MACD. Thanks to this the strategy provides superior predictions that result in regular profits in the hundreds of pips. Of course, the high percentage of success of predicted signals is also a matter of course, without which this strategy would surely become just another ordinary strategy among many others.
Trading Systems
Price Action – enter with the third bump!
Currency pairs are among the most traded markets in the world today and there are many followers for each pair. But there are also opponents, which is why each currency pair has evolved differently over time. Of course, it is not only traders who influence the different developments, but also countries, banks and many other institutions. In addition to the fact that currency pairs develop quite differently in many cases, there are also situations in which they behave very similarly, and we will discuss one of these here today.
Trading Systems
Wedge trading strategy
The wedge strategy falls into the category of universal strategies, thanks to which traders can use it not only across time frames, but also across different chart types, including the very popular volume charts and the increasingly popular renko charts. The trading wedges have built up such popularity over time that they are now sought after by many scalping traders who usually base their very highly profitable trading strategies on them.
Trading Systems
GIMMEE Bar Reversal System: Fx Trading Strategy for Sideways Markets
The GIMMEE trading system can be especially effective if used in conjunction with other indicators and tools like we are going to show below. Although it is not necessary to use these additional tools, they should help to increase the probabilities for making a profitable trade. A GIMMEE bar is defined as one that pierces the upper or lower Bollinger Band but doesn’t break it and then instead retraces off it. You can see this candle formation in the charts below, where we show trade examples with this strategy. Next, as soon as such a GIMMEE bar appears, we take its height (the distance between its high and low) and note these levels. In the bullish case, we are looking for a breakout above the high of the GIMMEE bar, while for short (bearish) setups, we are looking for a breakout below the GIMMEE bar’s low. The other level you took note of is the stop loss for the trade.