Simple strategy often gives better results than complicated systems. It is easier to master and gives the trader more confidence in making the right decisions.
This strategy uses only two very common indicators, the Parabolic SAR and the CCI.
The joint observation of the two indicators allows us to make trading decisions.
Our tests were carried out on a Pocket Option chart with one minute candles (TF 1) and three candles expiry, in our case three minutes.
Alternatively you can use Close Option alongside a Tradingview chart for the indicators
Of course you can use any other favorite broker.
If you use Pocket Option, we summarize a brief summary of the chart preparation process, a part that you can skip if you are already familiar with it.
PARABOLIC SAR indicator
The Parabolic SAR indicator gives us trend indications. If the candles are below the SAR points the trend is bearish, vice versa if they are above the trend it is bullish. When the candles move from one side of the indicator to the other it is a signal to open the operation, in practice the signal occurs when a Sar point appears on the side opposite to the ongoing trend.
CCI indicator
The CCI indicator shows market fluctuations. The CCI line that exceeds the central area gives us a signal of a change in trend.
The parameters of the indicators are:
SAR 0.02 / 0.2
CCI 14
Choice of colors and graphic sizes.
The CCI centerline is obtained by adjusting both levels to 50:
Input signal.
The rule is very simple. When at least one SAR point appears in the opposite zone and the CCI line crosses the center line, the position is opened.
Make sure both conditions are met simultaneously.
Observations.
Don’t anticipate entrances. Make sure the CCI has actually crossed the center line.
If you use higher time frames adjust the expiry accordingly, i.e. to three candles.
Avoid horizontal market trends with CCI often crossing the central line.
Late entries are not recommended, as shown:
Watch video examples on YouTube.
