Classic indicators are called classical indicators because their relevance is not lost so far. Despite the fact that they were developed 30-50-70 years ago, their formula is quite adaptable to existing trends. This strategy is based on two CCI indicators and one RSI, therefore it is called triple confirmation. It is perfect primarily for those who discovered MT4 just a few days ago – the strategy clearly shows how indicators work and how they correlate with each other.

Currency pair – EUR / USD. Timeframe – H1. CCI periods – 55 and 34, RSI period – 26, levels – 30, 50, 70.

Conditions for opening a long position:

  • CCI (55) crosses level 0 from bottom to top. It is considered the main signal.
  • CCI (34) crosses level 0 from bottom to top. Additional signal.
  • RSI crosses level 50 from bottom to top.

On the next candle, open a deal. We set stop loss at our discretion, for example, at a local minimum, retreating from it 5 points down. We close the deal when one of the CCI reaches level 200 or when the RSI reaches level 70.

The upper graph is CCI (55), the middle is CCI (34), and the lower is RSI. Ideally, all conditions for the 3 indicators should coincide simultaneously within the same candle. In this case, they are a little late relative to each other, the candle on which the entrance is made is indicated by an arrow. The lower horizontal red line is the stop loss, the upper is the approximate level of deal closure in accordance with the recommendations above.

With the exit conditions, there may be nuances that depend on the current volatility. You can experiment here; the most important thing is not to be greedy. It’s better to close the deal sooner than miss the moment when the trend changes direction.

Conditions for opening a short position:

  • CCI (55) crosses level 0 from top to bottom. It is considered the main signal.
  • CCI (34) crosses level 0 from top to bottom. Additional signal.
  • RSI crosses level 50 from top to bottom.

The entrance to the market is similar. We exit when reaching the CCI level of -200 or the RSI crosses the 30th level.

It is also seen here that the simultaneous coincidence of all conditions did not occur, but a discrepancy in one candle is permissible. A deal could have been opened earlier on a candle, but in accordance with the terms of the strategy, minimizing risks, it would be worth waiting for the candle, which is marked by an arrow. A stop order (upper red horizontal line) is placed on a strong resistance level. The strategy allows you to take a relatively small profit, but the signals are relatively frequent. The difficulty is to visually see the simultaneous intersection of level indicators. There can be no discrepancies with entering the market, while difficulties may arise with the moment the transaction is closed. If none of the proposed conditions is fulfilled for a long time, it makes sense or not to wait, closing the deal ahead of schedule, or evaluate the market using other methods.

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