Forex Morning Trade System

3.6.2 Commodity Chanel Index - CCI

The Commodity Channel Index indicator is based on an observation that the market moves in cyclical movements which means high and low of the price are coming in periodic intervals and in consecutive fashion. So, if we can detect those cycles we can detect the beginning and the ending of the trend.

CCI is used to help identify price reversals, price extremes and trend strength.

We use CCI with period 60, computed from typical price.

The rule is to go long if CCI is above 0, or go short if CCI is below zero.

3.6.3 FxMorningTrade indicator

I will explain my custom FxMorningTrade indicator - an optional component that simplifies the trading by checking the signals for us.

One function of FxMorningTrade indicator is to draw blue background on the chart, indicating the start of our trading hour. If everything is set up correctly according to the previous steps, we should buy or sell at the first candle that enters the blue zone.

The second function of the indicator is to give us helpful text information about the trade signal.

In the picture on the left, you see the indicator when the time is different than our trading time.

On the right, you see how it looks at 5:30am GMT, when we should enter the trade.

The indicator checks the rules of the system and gives us a clear guide to go LONG (buy), SHORT (sell) or NO TRADE.

In addition to that, it also gives us the ideal entry price and Profit Target and Stop Loss levels.

It really cannot be simpler than that.

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