The CCI and Awesome Oscillator trading strategy is a simple yet effective way to trade the markets. This strategy can be used on any time frame from the 1 minute charts up to the monthly charts. The key to this strategy is to look for market conditions that are conducive to either a buy or a sell trade.
The CCI indicator is used to identify overbought and oversold conditions in the market. When the CCI indicator is above 100, it is considered overbought, and when it is below -100, it is considered oversold. The Awesome Oscillator is used to identify momentum in the market. When the AO is above 0, it is considered bullish momentum, and when it is below 0, it is considered bearish momentum.
The buy setup for this strategy occurs when the CCI indicator is below -100 and the AO is above 0. This indicates that the market is oversold and there is bullish momentum present. The sell setup for this strategy occurs when the CCI indicator is above 100 and the AO is below 0. This indicates that the market is overbought and there is bearish momentum present.
The time frame that you trade on will depend on your personal preference. Some traders prefer to trade on the 1 minute charts, while others may prefer the daily or weekly charts. It is important to remember that this is a momentum strategy, so the shorter the time frame, the more volatile the trade will be.
As with any trading strategy, there is always risk involved. It is important to use proper risk management techniques to ensure that your account is protected.
Here are some tips to help you trade this strategy successfully:
-Look for markets that are in overbought or oversold conditions
-Identify the momentum with the Awesome Oscillator
-Enter trades in the direction of the momentum
-Use proper risk management to protect your account