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Stock Bollinger Band + CCI System

This strategy can be applied to any timeframe and to any security. There
are no guarantees implied with this strategy and losses can and may occur. This strategy
is presented for educational purposes only. Online Trading Academy, its affiliates and
employees cannot be held liable for any losses that you may have while employing this
strategy in any market.

• Use Exponential MA (20 Periods) as the Mean)


• Insert CCI indicator into lower study
• Insert Bollinger Band study, set to 20 periods and 2
standard deviations
( Optional - add a 50 EMA for a trend following moving average )
• Best for Stage 1 and Stage 3 (Trading Range Market)
• Works best when the bands are spread out wide due to
gaps
SETUP CHART - Find high time frame support and resistance and
take long trades near support and short trades near resistance

LONG / Buy
AGGRESSIVE ENTRY
1) Low or Close of the previous bar is OUTSIDE of the Lower
BandAND this bar’s Close is INSIDE the Lower Band
2) When the CCI crosses above the oversold (-100) line
3) THEN Buy the next bar at Open (if higher time frame and
CCI crosses during the formation of the bar then enter when
the line crosses above the oversold (-100) line)

CONSERVATIVE ENTRY
1) Close of the previous bar is OUTSIDE of the Lower Band
AND this bar’s Close is INSIDE the Lower Band
2) When the CCI crosses above the oversold (-100) line
3) THEN Buy the next bar at Open (if higher time frame and
CCI crosses during the formation of the bar then enter when
the line crosses above the oversold (-100) line)
4) Use “STOP MARKET” to set stop loss

Property of Online Trading Academy. To be used strictly for education purposes Version 20110617
5) Prepare your first Target – set at the
Mean, i.e., the Exp MA (20)
6) Your next Target is the other extreme of
the Higher Band
7) Manage your Trailing Stops

SHORT / Sell

AGGRESSIVE ENTRY
1) High or Close of the previous bar is OUTSIDE of the Upper
Band AND this bar’s Close is INSIDE the Upper band when
the CCI crosses below the overbought (100) line
2) THEN Sell Short the next bar at Open (If higher time frame
and CCI crosses during the formation of the bar then enter
when the line crosses below the overbought (-100) line)

CONSERVATIVE ENTRY
1) Close of the previous bar is OUTSIDE of the Upper Band
AND this bar’s Close is INSIDE the Upper band when the CCI
crosses below the overbought (100) line
2) THEN Sell Short the next bar at Open (if higher time frame
and CCI crosses during the formation of the bar then enter
when the line crosses below the overbought (-100) line)
3) Use “STOP MARKET” to set stop loss
4) Prepare your first Target – set at the Mean, i.e., the Exp MA
(20)
5) Your next Target is the other extreme of the Lower Band
6) Manage your Trailing Stop

Property of Online Trading Academy. To be used strictly for education purposes Version 20110617

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