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