This is one of the most comprehensive and profit making indicator that you will come across. It is a trend indicator that is very easy to use while at the same time very profitable. It is a perfect choice for the Forex beginners.
If you understand how it works and how to use it, you will be good to go. Just follow this article keenly for guidelines on how to use this indicator.
How the Real Woodie CCI indicator operates.
The Real Woodie CCI indicator is displayed on a separate chart below the main trading chart and just as the name suggests, is based on Commodity channel index indicator and the smooth moving averages.
In the indicators chart you will notice a lot of stuff is displayed for you. We shall look at each of the object generated here and its purpose to contributing to your success in trading.
To begin with, there are two lines that oscillate about a zero line. One of the two lines is black while the other one is red. These two line cross each other as they oscillate about the zero line.
There is also a dotted line that is generated along the zero line. The color of this dotted line changes according to the trend of the market prices. The color of the line changes from red to green and vice versa.
Fig.1. The Real Woodie CCI indicator.
There are also thin vertical lines that are forms from the zero line to the black oscillating line. These thin lines blue, yellow, gray or red. These line are red only when the oscillating black line is below the zero line and blue only when the oscillating black line is above the zero line. For the gray and yellow colored lines, they can occur when the black oscillating line is on either side of the zero line.
The most important thing is the levels that are indicated on the indicators chart. These levels are at 300, 200, 100, 0, -100, -200 and 300. The three hundred levels are rarely reached but they are very important. These level are the once that dictate when to place or close your orders.
Placing and closing orders using the Real Woodie CCI indicator.
Placing sell orders
The sell order should be placed when all the following conditions are met:
- The red oscillating line gets below the black oscillating line.
- The crossing have to at least take place above the level of 100.
- The dotted line at the zero level has to be red.
- The sell order should be closed black oscillating line gets above the red oscillating line. This have to happen below the zero level.
Placing buy orders
The buy orders are placed when all the following conditions are met:
- The red oscillating line gets above the black oscillating line.
- The crossing have to at least take place below the level of -100.
- The dotted line at the zero line has to be green.
- The sell order should be closed black oscillating line gets below the red oscillating line. This have to happen above the zero level.
Fig.2. Placing and closing orders using the Real Woodie CCI indicator.
Download Free Forex Real Woodie CCI indicator