5.2 Commodity Channel Index (CPI) trading instructions
Автор: Capex Forex Trading
Загружено: 2014-02-26
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http://www.capexforextrading.com/fore...
Commodity price index allows to identify when prices are out of their 'normal' trading range. The way in which we do this is by waiting for a reading above 100 if we are trading up (buying), and a reading below 100 when we are trading down (selling).
Howevber, before we use the Commodity Channel Index, we firstly must establish that a trend is already taking place. We do this by using additional indicators such as Moving averages and the Momentum indicator. Once we have a confirmation in both indicators that a trend is taking place, we use the CCI indicator to take the trade. Watch the full Forex training video to see how we use moving averages and the momentum indicator to establish a trend and the CCI indicator for our entry.
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