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Examples of a Buy Trade

Buy trades are exactly the same as sell trades except they occur at the bottom of the CCI indicator screen and work upwards not downwards as with sell trades. Here are a couple of example of buy trades in action from the GBPNZD pair in July 2015.

A buy trade example

Explanation of example above:

 

  • A new Set-up (1) forms below the -70 level line.

  • A Retest peak forms (2) above the -70 level line.

  • The CCI indicator MA line is in the correct position pointing upwards.If price action breaks the opening price in the direction of the trade, the trader pulls the trigger to place the trade.

  • As the peak is above the -70 level line then this is the last Set-up-Retest pair in this trading opportunity unless a level trade type appears.

  • Should any other peak form after this peak they are ignored until the CCI indicator again goes below the -70 level line.

  • The CCI indicator (2) again passes the -70 level line to start a new trading opportunity (3).

  • Even if the peak at 3 had been within the 10pts allowed it still wouldn't be a trade with peak 1 as there is a peak in between them peak 2.

CB buy trade

Explanation of example:

 

  • A new Set-up (1) forms below the -70 level line.

  • As no retest peaks form above the -70 level line the strategy waits for the next peak to form.

  • Even though this occurs below the -70 level line as long as the Retest peak (2) is within 10pts of the Set-up peak it is still a valid Set-up-Retest peak.

  • Had the peak at 2 finished lower than 10pts then this would have been invalid Set-up-Retest pair.

  • The CCI indicator MA line in the correct position, pointing upwards.

  • If price action breaks the opening price in the direction of the trade, the final component, this is the trigger to place a trade.

The trader should have no real problems when it comes to placing trades. Just as long as the trader remembers that the other components of the trading strategy are in place, this part is quite simple. It will be even easier after completing the action on the demo platform several times .

CB buy trade2

A second buy trade example

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