Fibonacci and CCI Magic

Fibonacci and CCI give results.Fibonacci and Commodity Channel Index (CCI) are two indicators which the majority of the traders implement nowadays.

Both indicators are unique, especially when used right while being implemented in such a manner that can enhance consistency and stability to one’s trading activity.

When applying Fibonacci and CCI, it is important to have a strategy in place, as well as the right settings, depending on the time-frame of implementation.

Fibonacci and the 61.8% zone

The first indicator, the Fibonacci, is mainly useful for finding the best possible price in placing a buy and a sell order, particularly at the 61.8% level.

On the other hand, the CCI can be used for identifying breakout zones or opportunities, such bullish or bearish breakouts.

Therefore, assuming that the price has reached the 61.8% Fibo, and the CCI signal line surpassed the 100 zone, then this is an indication that a buy order has higher probabilities of being right.

Alternatively, in the condition where the price is at the 61.8% Fibo, but the CCI signal line is below the -100 area, this is an indication that a sell order has higher chances of being the right move.

Before placing your first order remember the following:

  • When the CCI is above 100 and the price is at the 61.8% level Fibo this is a buy signal
  • If the CCI is below -100 and the price is at the 61.8% level Fibo this is a sell signal
  • The stop loss and the take profit levels could be set at 50 and 50 – 80 respectively

Moreover, always remember that you should trade cautiously at all times.

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