Trend Following with CCI and EMA

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Trend Following with CCI and EMA

This M30 strategy is a robust trend-following system that utilizes the crossover of two Exponential Moving Averages (EMA) to define the trend direction, while using the Commodity Channel Index (CCI) as a momentum filter to confirm valid entries.

Strategy Profile

Timeframe

M30 and Above

Pairs

All Pairs

Indicators

EMA + CCI

1. Indicator Setup

  • Fast MA: Exponential Moving Average (EMA), Period 8.
  • Slow MA: Exponential Moving Average (EMA), Period 28.
  • Momentum: Commodity Channel Index (CCI), Period 30.

2. Long Entry (Buy) Rules

  1. Crossover: The 8 EMA crosses the 28 EMA from bottom to top.
  2. Filter: The CCI (30) line is positioned above 0.
CCI and EMA Trading Strategy
Figure 1: Buy & Sell signals based on EMA Crossover

3. Short Entry (Sell) Rules

  1. Crossover: The 8 EMA crosses the 28 EMA from top to bottom.
  2. Filter: The CCI (30) line is positioned below 0.

Exit Strategy

  • Stop Loss (Buy): 20 points below entry.
  • Stop Loss (Sell): 10 points above entry.
  • Take Profit: 50 points or at key Support/Resistance levels.

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