The Woodies CCI Indicator – The Best Standalone Indicator for all Traders
The forex market offers traders and investors a variety of trading opportunities for anyone serious about it. However, for most people, it is a mirage as they go through a losing cycle. The various trading opportunities are mostly masked in price action, which is why many new traders think forex is a scam. Nevertheless, to crack the price action direction successfully, you need a high level of accuracy and a good trading strategy. Notwithstanding the Woodies CCI Indicator is one forex trading strategy that can change that story.
Newbie in the market find it hard to stick to a particular strategy; they jump from one strategy to another while at the same losing money in this cycle. In this article, you will learn about the CCI indicator, the principle behind it, and ways of using it in your trading strategy. The forex market is all about finding a simple strategy that works for you and use it to your advantage.
Introduction to Woodies CCI Indicator
Ken Wood is the founder of the Woodies CCI system; the indicator is what made him famous in the trading world. We understand the forex market is one where traders hide their strategy or system that works for them; however, for Ken Wood and his team, this was different. The transparency in sharing the rules of the Woodies CCI Indicator is what led to its widespread popularity among many traders.
Once you read the manual and apply the rules correctly, you can know when to enter a trending or counter-trending market. Besides this, there are also rules for exiting a trade with additional knowledge of when not to trade. When you give people free things that work, they tend to like you and share whatever you share.
That is what contributed to the widespread popularity, along with the fact that Ken Wood and his team teach traders in ways to incorporate the indicator into their trading strategy. From all observation, one can say that the Woodies Indicator is not a standalone indicator as many think but a complete trading system to trade the forex market. What this means is that you can use it to trade the market without adding any analysis tool to confirm your trade.
The principle behind the Woodies CCI Indicator
The indicator on its own is a trading system in the sense that it incorporates different metrics and top 10 mt4 indicators. The Woodies CCI is a combination of 5 different elements, which include the CCI indicator, CCI Histogram, the CCI Turbo, support/resistance lines, and the baseline.
The CCI Turbo and the CCI represent the green and red lines, respectively. However, the CCI turbo is a standard CCI indicator with a shorter period. CCI means Commodity Channel Index, which is an oscillator indicator in the popular
MT4 trading platform. It measures the difference between the price change of a currency pair and its average price.
Whenever the Woodies Indicator moves upward, it means the currency pair or asset is above the average price. On the other hand, a downward indicator signifies that the asset price is below the average price. The CCI indicator is one vital tool to use during your trade setup.
Another component of the Woodies CCI is the CCI histogram. It functions adhering to the following rules:
1. When the trend is negative, the CCI histogram stays below the zero line
2. If the trend is positive, the CCI histogram stays above the zero line
3. The previous performance of the CCI indicator determines the color of the histogram bars
4. The following bar turns green if the CCI indicator stays above the zero line for more than 6 bars
5. If the CCI indicator stays below the zero line for a minimum of 6 bars, the bar following it turns red.
6. The baseline of the indicator is set at zero, whereas the overbought and oversold levels are -100 and +100, respectively. However, you can adjust these settings from the indicator property.
The combination of these various factors is what triggers a bearish or bullish signal when using the Woodies Indicator. You can combine the woodies cci indicator with many other indicators such as the pin bar indicator mt4.
Setting Up the CCI Indicator
Since the indicator is a custom-built, you have to download it before moving it to the data folder of your trading platform. We assume you have downloaded it already and placed it on the right folder.
On your trading platform, go to “Navigation” panel on the left-hand side of the screen to locate the Woodies Indicator. You can drag it into your chart; then the indicator setting tab will appear where you can set the CCI periods, color for each element, source price, support and, resistance levels. While it comes with its default settings, you can alter it to suit your personal needs.
Now you know how to set it up, you can start using it on your trading while following the rules stated above.
Final Remarks On
You don’t have to make your trading hard by cracking your brain. There is no reason to do that if you decide to take that route. You are defeating the goal of trading, which is all about simplicity. As you have seen, the Woodies CCI Indicator offers a simple trading system that gets the job done without a price chart.
Although it uses the same principles with trendlines, patterns, and RSI indicator, the approach is quite different. All you need is to follow the rules of this indicator and wait for the patterns to form before you enter the market. Without fine-tuning the indicator, you can be profitable seamlessly. Also if you want to go a step further in your trading you can always check the options for auto trading. You can visit : https://best-forex-expert-advisors.com for detailed ea reviews.
The forex market entails following strict rules in all aspect if you don’t want to lose money. While one person hoping you never follow the rules of trading is your broker since they live feeding on your money. We have various tools and indicators to ensure you don’t do that and be the one smiling to the bank.
To help traders, we have the collection of very best indicators and tools, which to make your trading worthwhile. Trading isn’t labyrinth but one that requires the right information. So check these through the link here, and you will trade like the professionals. We are already preparing a detailled forex buy sell indicator article. We will post this normally next week already.
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