The commodity channel index (CCI) is an oscillator originally introduced by Donald Lambert in 1980. Traders and investors use the commodity channel index to help identify price reversals, price extremes and trend strength. As with most indicators, the CCI should be used in conjunction with other aspects of technical analysis. CCI fits into the momentum category of oscillators. In addition to momentum, volume indicators and the price chart may also influence a technical assessment. It is often used for detecting divergences from price trends as an overbought/oversold indicator, and to draw patterns on it and trade according to those patterns. In this respect, it is similar to bollinger bands, but is presented as an indicator rather than as overbought/oversold levels.
The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to chart the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. The RSI is classified as a momentum oscillator, measuring the velocity and magnitude of directional price movements. Momentum is the rate of the rise or fall in price.
Time Frame: H1 or above
Buy – when CCI(50) crosses RSI(30) from below
Sell – when CCI(50) crosses RSI(30) from above
Take Profit – 50pips
Stop Loss – 25pips
Always use stop loss to protect your account and use good money management. Once trade is in profit move stop loss line to break even point.