Accelerator Oscillator and Commodity Channel Index
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In this video tutorial we will combine 2 proven indicators… Accelerator Oscillator and Commodity Channel Index.
In any strategy in general, what we want is for a strategy to provide us reliable buy/sell signals so that we can maximize profit and minimize risk.
The way to find strong signals is by combining 2 or more indicators as a way of check and balance.
You can identify a sell signal when there is a break when the graph is falling and a buy signal when there is a break when the graph is rising.
In fact, when the line falls below 100 provides strong indication that it is time to sell while a signal below zero will indicate that it is time to buy.
If you want to determine a strong buy signal then you need to look at the very first bar that rises on the accelerator oscillator.
Then take a look immediately below that bar to see where the CCI line is within the one hundred to minus one hundred areas.
This works out well for buying.
The next thing that you need to do is ensure that this is not on an immediate resistance line.
If it is not then we can go ahead and buy for as far as it goes or as far as you want to go.
Next, let’s look at when a sell trade opportunity comes in.
Look for the very first bar that is in line with the CCI and the CCI must be in the range of zero to one hundred for a sell trade opportunity.
Next, target the previous support and resistance levels.
This works out to a level between 132 and 133.50.
As always, practice this combination with a demo account before going live.
We cannot stress this enough.
Do not make the mistake made by most beginners which is to jump straight into the market with live trading on a new strategy.
Stay safe out there….
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