The CCI Failure Swing is based on the Commodity Channel Index forming a lower high above +100 or a higher low below -100.
This inability to make a new extreme often signals the end of the prior trend.
The strategy goes long when CCI holds above -100 and turns up, or short when it fails near +100 and turns down.
A percent stop keeps risk small and trades exit if the CCI crosses back through the previous swing level.
- 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