FREE Day Trading Lessons - BTC/USD - This trading strategy uses Commodity Channel Index (CCI) buy and sell signals I have developed over the past 20 years. I also use a 20 period Simple Moving Average (SMA), which is equal to the zero line of the CCI because they are both set at 20.

Generally speaking, a chart turns Bullish when the CCI rises above zero and the price rises above the 20 SMA. A chart turns Bearish when the price drops below the 20MA and the CCI drops below zero. These buy and sell signals have the least amount of risk, and are well suited for novice traders.

The -400 CCI reading says a chart is very oversold and is due for a bounce. This entry is for expert level traders. The next buy signal with less risk occurs when the CCI moves above the -100 line. Buy every time the CCI rises above zero. The final buy signal is when the CCI rises above its +100 line.

There is one sell signal. Sell everything when the price drops below the 20 SMA and the CCI drops below zero.