CCI MA – Binary Options göstəriciləri

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CCI + MA Trend-Follow Method for Binary Options Trading

A basic definition of a trend is a quotation’s general position relative to its average values. That’s why the MA indicator is absolutely indispensable in determining the current trend. Unfortunately, the moving average does not show traders what point is ideal to enter the deal towards the trend direction. For this purpose many traders use the CCI oscillator.

A brief outline of types of moving averages and their applications is included in the explanatory video about the indicator, located in the MA settings window of the IQ Option platform .

In addition to the video, we inform you about common strategies, using different types of moving averages with other indicators involved, with clear and brief explanations from basic to advanced levels.

The idea is simple – to determine a trend using the moving average, enter on a basis of crossing the +100 level of the CCI indicator curve.

Indicator settings

The three following questions arise when setting up any trading system:

  1. Work timeframe;
  2. Indicator settings (indicator period, curve type to be used in the strategy);
  3. Time to hold the position (option expiration);

A large number of issues arise regarding the choice of the moving average type. It is considered that the basic moving average gives a lot of false signals on flat sections, and other types diverge in the presence of weight coefficients, giving the latest data greater importance. The overall winner is the exponential moving average, where influence with the nearest average values grows exponentially.

Natural selection has decisively resolved any disputes on the usage of moving average investor periods of 50, 100 and 200. They are used by analysts in reports and to this day they are set in the trading platforms of portfolio managers. Let’s make a simple moving average with a period of 50 within the IQ Option trading platform:

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SMA settings. Period = 50

Indicator settings are directed to identifying a trend – CCI with period 14 and SMA with period 50:

CCI (14) and MA (50) on trading chart

Upward trend

The signal of an upward trend’s inception is given by a candlestick crossed and closed above the SMA line. CCI readings should be more than 100. The figure below shows the features of upward trend inception: price crossing the moving average and quotations closing above the line (1).

Just keep waiting until the CCI indicator shows a value of 100 or above (2). With this method traders prefer to buy options 3-4 candles ahead.

Downtrend

In case we are preparing to buy a Put option, it is reasonable to wait for the congruence of quotations crossing the SMA line top-down, with the price of closing the candlestick below this line and CCI decreasing with readings below 100, as shown in the figure below. The intersection of quotations with SMA took place earlier on, so we do not enter.

Wait for CCI to fulfill the proper condition, see it in point 2, and hold for three timeframes (3).

The task of subsequent purchases of binary and turbo options on this trend is performed as follows. One intersection equals one trend; thus, despite the fact that point 4 of the situation in the figure above depicts the issue of finding quotes below SMA and newly appeared CCI signal below 100, which beforehand rose above that level, we do not enter this position here.

Indicator periods

Is it possible to scale this trading method on various timeframes? The classic method involves the application of CCI + MA methods on daily candlesticks. Considering the smaller timeframes, we change the period of the moving average: for 4-hour candlesticks it will be 100, for 1-hour and below – 200, the CCI indicator stays at the same 14 period. If you want to experiment, don’t look for values of this period above 24.

Novice traders try to find the ideal values for indicators and systems via brute force or by searching in literature. They are not alone in that matter, as investment institutions give similar tasks to mathematicians, the designers of new indicators. The grail has not yet been found. There exists already a good understanding of the existence of cyclical changes in the market, but their parameters are constantly changing. To reflect these changes precisely still seems to be impossible, as it is thereby to connect their functional dependency to something and thus make a clear prediction. For the best possible analysis, use the period values from the books of trading classicists, as they usually work consistently with the market cycles.

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
In accordance with European Securities and Markets Authority’s (ESMA) requirements, binary and digital options trading is only available to clients categorized as professional clients.

GENERAL RISK WARNING

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
87% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CCI and MA

Method of CCI + MA Trend-Follow applicable to Trading IqOption

Trend is generally defined as a position of general position of quotation in relation to average values. That is the reason why MA indicator is totally irreplaceable for determination of the current trend. Nevertheless, the moving average does not display the ideal point to start the deal towards the direction of a trend. Hence, a lot of traders apply the CCI oscillator to resolve this issue.
The video, situated in MA settings window of the IQ Option platform, briefly explains the types of moving averages as well as the applications.

The general steps of utilizing various moving averages types with other indicators, are also available with distinct explanations for standard and up to advanced levels.
In order to determine a trend via the moving average, you are required to enter based on the crossing the CCI indicator curve at +100 level.

Settings of the Indicator on iq option

The setting up procedure of any trading system generally involves the following 3 factors:
1. Timeframe of the work;
2. Settings of the indicator (type of the curve to be applied for this steps, period
of the indicator);
3. Time required to hold the position (expiration of option);
A lot of problems appear with regards to the selection of the type of moving average. Basic moving average is considered to cause many false signals during flat sections. In addition, other types tend to diverge when weight coefficients are present, resulting in increase of latest data importance. In case of exponential moving average, the nearest average values influence has an exponential growth.
Natural selection involves the application of investor periods of moving average equal to 50, 100 and 200. Those periods are utilized by analysts in their reports and also included in the portfolio managers of trading various platforms. The following example, shows a simple moving average with a set period of 50:

SMA settings. Period = 50
Indicator settings are used for trend identification – CCI period of 14 and SMA period of 50:

CCI (14) and MA (50) plotted together on a trading chart

Upward trend

The upward trend’s inception signal is provided by a candlestick, which is crossed and then closed once above the line of SMA. The readings of CCI should be higher than 100. The attached below figure displays the upward trend inception features: price crosses the moving average, while quotations close above the line (1).
Wait till the indicator of CCI is equal or more than 100 (2). By using this method traders are able to make the options purchase with 3-4 candles ahead.

Downtrend

In case it is decided to purchase a Put option, the best method is to wait for quotations congruence once they are crossing the line of SMA in a top-down pattern. Meantime the closing candlestick price should be below that line and CCI should experience a decrease with values below 100, as displayed in the figure provided below. The intersection SMA and quotations in that diagram appears earlier than supposed to, hence the decision to not enter is taken.
In this situation the best steps is to wait until CCI matches the proper condition, check it in point #2, and the wait for three timeframes (3).

In case of subsequent purchases of turbo options as well as binary options, the following steps are to be done on that trend. One intersection represents one trend; hereby, regardless of the fact that point 4 of the case shown in the abovementioned figure displays the problem of finding quotes that are below SMA as well as the CCI signal that has newly appeared below 100 value, which was previously rising above that particular level, it is not recommended to enter that position.

Periods of Indicator

Some traders ask, whether it is possible to perform scaling of this trading method using diversified timeframes. The standard method requires CCI + MA methods to be applied for daily candlesticks. Taking in consideration the smaller timeframes, it is possible to change the moving average period. Likewise, in case of 4-hour candlesticks the moving average is 100, for 1-hour candlesticks and below the moving average is 200, while the indicator of CCI remains the same, i.e. a 14-period. In case if you decide to do some experiments, then it is advised not to use the values of that period higher than 24.

Traders who are still new and not experienced enough, try to get the ideal values of indicators and systems by applying brute force or by having an extensive literature search. In fact, investment institutions also assign similar types of tasks to mathematicians and the designers of new indicators. The perfect solution has not been confirmed yet. However, there is already a very firm understanding about the cyclical changes that exist in the market. However, their parameters keep changing all the time. The mission to reflect those changes in a precise manner still remains impossible, because it requires the connection of their functional dependency to a certain thing, which will then allow to have a more precise prediction. In order to achieve the best analysis possible, it is recommended to apply the period values mentioned in the books by trading classicists, because usually they continuously deal with the market cycles.

CCI on MA MAs

CCI_onMA_MAs.mq4 (9/3 Kb) View
Improved version of the indicator CCI_onMA.

CCI_Period =14;
CCI_Price =5;
CCI_multiplier=0.3;
//—-
MaPeriod =14;
MaMetod =0;
MaPrice =5;
//—-
ShowMa1Typical =true;
ShowMa1Close =true;
ShowCCIonClose =true;

Binary Options Indicators – Download Instructions

CCI on MA MAs is a Metatrader 4 (MT4) indicator and the essence of the forex indicator is to transform the accumulated history data.

CCI on MA MAs provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust their strategy accordingly.

How to install CCI on MA MAs.mq4?

  • Download CCI on MA MAs.mq4
  • Copy CCI on MA MAs.mq4 to your Metatrader Directory / experts / indicators /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your indicator
  • Search “Custom Indicators” in your Navigator mostly left in your Metatrader Client
  • Right click on CCI on MA MAs.mq4
  • Attach to a chart
  • Modify settings or press ok
  • Indicator CCI on MA MAs.mq4 is available on your Chart

How to remove CCI on MA MAs.mq4 from your Metatrader Chart?

  • Select the Chart where is the Indicator running in your Metatrader Client
  • Right click into the Chart
  • “Indicators list”
  • Select the Indicator and delete

Click below to download
CCI on MA MAs

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