CCI Hook Reversal Strategy

The CCI Hook Reversal uses the Commodity Channel Index as a trigger when it hooks away from an extreme reading. After the indicator pushes above +100 or below -100 it often snaps back quickly as momentum stalls.

Testing indicates an average annual return of about 169%. It performs best in the crypto market.

Long trades occur when CCI turns up from oversold while price still prints a marginal new low. Shorts are initiated when CCI rolls over from overbought with price poking to new highs.

Each trade carries a small fixed stop and is exited when the CCI hooks back in the opposite direction or the stop is reached.

Details

• Entry Criteria: indicator signal
• Long/Short: Both
• Exit Criteria: stop-loss or opposite signal
• Stops: Yes, percent based
• Default Values:
  • CandleType = 15 minute
  • StopLoss = 2%
• Filters:
  • Category: Reversal
  • Direction: Both
  • Indicators: CCI
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural networks: No
  • Divergence: No
  • Risk level: Medium