A Guide to CCI RSI Strategy. Use This Powerful 3-Indicator Combo for Trading on IQ Option


CCI RSI strategy on IQ OptionTo keep it short, we have named today’s trading method as the CCI RSI strategy. It almost rhymes. Trading strategies can help you in turning into a successful trader. You only have to know how and when to use them. Today, I will present a strategy that will give you a hint about the trend reversal and the best points to open a trading position. It will rely on three different indicators. Together, they will provide pretty valuable signals.

Key Takeaways🔑

The CCI RSI strategy is a powerful combination of three different oscillators that predict trend reversals.
This strategy is best suited for major currency pairs, with a 5-minute timeframe recommended for optimal results.
Practice the CCI RSI strategy on a demo account before implementing it in live trading to gain experience and confidence.

Setting up the chart for CCI RSI strategy

To be able to access the indicators list, you have to be logged in to your IQ Option trading account. You will also need to decide what kind of asset you want to trade. For this strategy, it is best to choose from major currency pairs. Choose the Japanese candlesticks chart type, so the strategy I am describing will be clearly visible. With these things sorted out, you are ready to create a template for the trio strategy.

You must click on the indicators icon which you will find on the left side of the IQ Option platform. All the indicators needed for our strategy are under the indicators tab. When you know what you are looking for, you may simply start writing the name of the tool in the search window and the suggestions will be displayed.

Accessing indicators on IQ Option platform
Accessing indicators on the IQ Option platform

As I have already mentioned, the strategy we are talking about today is built upon three indicators. They all fall within the oscillators group and they are the Relative Strength Index, the Commodity Channel Index and the Williams %R. You will need to add one after one. You can adjust the colours, thickness of the lines and periods. For the CCI, change the period to 20.

For quick access simply start typing the name of indicator you want to use
For quick access simply start typing the name of the indicator you want to use

I have good news for you. You will not have to repeat all these again. On the IQ Option platform, there is this wonderful possibility to save the template you have created. By doing this, you save yourself precious minutes next time you would like to use the trio strategy.

In order to add the strategy to the saved templates, feel free to use our short guide about managing reusable templates on IQ Option.

Adjust CCI period to 20 when adding it
Adjust CCI period to 20 when adding it

How to use the CCI RSI strategy of three on the IQ Option platform

The RSI, CCI and Williams %R should be visible under your price chart, one underneath the other. Your job now is to watch them carefully and await the favourable situation to occur. And what is the favourable situation in this case?

Opening long transactions with the CCI RSI strategy

There are three conditions you are expecting to happen.

  1. There are two horizontal lines drawn on the RSI oscillator window. Their values are 30 and 70. The RSI line should cross the 30 line from below.
  2. On the Williams %R window, you will see a few horizontal lines. The indicator should cross the -80 line from below and continue upwards.
  3. The CCI line is supposed to cut the -100 line from beneath.
Indicators are all set
Indicators are all set

So all three oscillators should cross lower lines on the way up. A signal is very strong when all three conditions are met. However, it is sufficient for a strategy to work when only two indicators are confirming the entry point.

Signal to go long - 2 of 3 oscillators are confirming entry
Signal to go long; 2 of 3 oscillators are confirming entry

Opening short transactions with the CCI RSI strategy

You can open a short position when only two indicators are giving signals to do so. Naturally, three are better, but it will not happen every time that all three confirm the trend reversal. In order to open a short transaction the lines of the oscillators should move downwards from higher parts.

  1. The RSI should cross the 70 line from the top.
  2. Williams %R cuts the -20 line from above.
  3. The CCI should cross the 100 line from the top and continue downward.
Signal to go short - 2 of 3 oscillators are confirming entry
Signal to go short; 2 of 3 oscillators are confirming entry

Pros and Cons of the CCI RSI Strategy

Pros ✅

  • Combines three powerful oscillators for better accuracy
  • Strong and reliable signals for trend reversals
  • Can be practiced on a demo account before real trading
  • Works well with major currency pairs

Cons ❌

  • May not be as effective with other asset types
  • Requires close monitoring of multiple indicators
  • Not every signal will have all three indicators confirming the trend reversal



Indicator Role in the CCI RSI Strategy
Relative Strength Index (RSI) Measures the strength of price movements and identifies overbought/oversold conditions
Commodity Channel Index (CCI) Determines the relationship between an asset’s price and its moving average, helping to identify trends and reversals
Williams %R Indicates the level of the close relative to the highest high for a given period, helping to identify overbought/oversold conditions

Conclusion

The CCI RSI strategy that combines the RSI, Williams %R and the CCI predicts the reversal of the trend. There are three oscillators in this strategy, although it is enough when you receive a signal just from two of them.

The signals obtained thanks to the trio strategy are pretty strong and reliable.

It is a good idea to use the CCI RSI strategy on the markets with high payout rates such as major currency pairs.

The duration of your transactions depends on the period of the candles you are using. It should be the same as your chart’s timeframe, in our opinion, 5 minutes works the best, but you can also try a different period. Adjust it accordingly.

Remember, there is an IQ Option practice account where you can implement every new strategy you have read about. You get virtual cash there so you have the possibility of opening risk-free trades. Practice as long as you need and switch to the real account when you are ready. Be sure to describe your experience with the CCI RSI strategy in the comments below the post.

Good luck!

 

 

GENERAL RISK WARNING

The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.
Kindly note that this article does not provide any investment advice. The information presented regarding past events or potential future developments is solely an opinion and cannot be guaranteed as factual, including the provided examples. We caution readers accordingly.

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Bart Bregman

Author / IQ Option expert: "My name is Bart Bregman, I have 9 years of full-time professional trading experience. I've been trading with IQ Option for more than 7 years, mainly on the shorter time frames doing technical analyses, and have many experience with Binary Options, CFDs, Options, and Crypto trading. There is no such thing as a bad trade! As a digital nomad trader, I'm mostly traveling all over the world. Follow my journey on Instagram at https://www.instagram.com/bart_bregman/. "

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