iMACD and Commodity Channel Index Indicator

[contentblock id=1 img=gcb.png] In this trading video tutorial, we will cover the combination of iMACD and Commodity Channel Index Indicator for yet another nice reversal strategy. As you might recall, the CCI Index can pinpoint overbought and oversold conditions in the market but using it alone is really not advisable as with all indicators. What we want to do as Full Time traders is always to get confirmation from at least one other indicator before making any trades. Combining 2 of more indicators will result in less trades but will increase our trade success probability. So let's get started on the iMACD and Commodity Channel Index Indicator... Our first sign is to look for the crossover for the iMACD. If the blue line crosses above the red line... then we are looking at a possible long position. If the red line crosses above the blue line...then we are looking at a possible short position. Next we will get confirmation from the CCI Indicator... If we are looking at a long opportunity, then we want to see the CCI coming off the 20 level. And if we are looking at a short opportunity, then we want to see the CCI coming off the 80 level. Just a recap... the 20 and 80 level in the CCI shows oversold and overbought levels respectively. When combining 2 indicators or more, the indicators usually does not trigger at the same time. So it's really up to us to use common sense and provide some allowance. Typically, we do not want to see more than 3 sessions because that might really be too late in the trend. You should already know that by now. If both aligns at the same time, then it's a go. For more conservative traders, then you might want to look at the price bar to be in green (for long positions) and red (for short positions). This is a simple reversal strategy but a really effective one if you keep to discipline...which we are sure you will after watching so many of our tutorials. We have more wonderful strategies lined up... be sure to keep coming back. Also, it will be awesome if you could just leave some feedback below to let us know how we are doing. With that... we will see you in the next video... and we are looking forward to it.