Stock Bollinger Band + CCI System

• Use Exp MA (20) as the Mean (check EMA box next to

moving average)

• Insert CCI indicator into lower study

• Select Bollinger Band study, set to 20 periods and 2

standard deviations (Terra Nova default)

( Optional - add a 50 EMA for a trend following moving average )

• Best for Stage 1 and Stage 3

• Works best when the the bands are spread out wide (gaps)
Class trade: CSCO using 2 Day 2 Min chart

SETUP CHART - Find high time frame support and resistance and
take long trades near support and short trades near resistance

1. change the 2 minute chart to a 60 minute chart

2. look for the highest high of the last X number of days on the
chart and place a horizontal trend line on the high
3. look for the lowest low of the last X number of days on the
chart and place a horizontal trend line on the low
(this is the range of the last x number of days visible on the
chart)
4. look for pivot lows above the lowest low and pivot highs below
the highest high and place horizontal trend lines on those pivot
highs and pivot lows ( a pivot low has a higher low to the left and
to the right)
5. look for any areas of prior support or prior resistance and place
horizontal lines across those candle bodies
6. if the last hour or two are similar highs and lows, draw
horizontal lines on the prior hour high and low. ( you can trade
the 60 minute channel)
7. look for any vertical trendlines to break (downtrend lines or
uptrend lines) on the 60 minute chart and draw them on the
chart
8. return the chart to 2 minutes and add the additional criteria to
only take the trades when price is near the support and
resistance lines

LONG / Buy

AGGRESSIVE ENTRY

Low or Close of the previous bar is OUTSIDE of the Lower Band

AND this bar’s Close is INSIDE the Lower Band

When the CCI crosses above the oversold (-100) line

THEN Buy the next bar at Open

(if higher time frame and cci crosses during the formation of the bar then
enter when the line crosses above the oversold (-100) line)

CONSERVATIVE ENTRY

Close of the previous bar is OUTSIDE of the Lower Band

AND this bar’s Close is INSIDE the Lower Band

When the CCI crosses above the oversold (-100) line

THEN Buy the next bar at Open

(if higher time frame and cci crosses during the formation of the bar then
enter when the line crosses above the oversold (-100) line)

Use “STOP MARKET” to set stop loss – set at Entry Price - 10¢

( type in entire amount of stop loss less 10¢ for initial stop

( example enter long at 20.26, type in 20.16 in the stop

price box )
 Prepare your first Target – set at the Mean, i.e., the Exp MA (20),

or Entry+50¢ profit

Your next Target is the other extreme of the Higher Band

Manage your Trailing Stops ( use .05 trail stop for this exercise )

SHORT / Sell
Short

AGGRESSIVE ENTRY

High or Close of the previous bar is OUTSIDE of the Upper Band

AND this bar’s Close is INSIDE the Upper band

when the CCI crosses below the overbought (100) line

THEN Sell Short the next bar at Open

(if higher time frame and cci crosses during the formation of the bar then
enter when the line crosses below the overbought (-100) line)

CONSERVATIVE ENTRY

Close of the previous bar is OUTSIDE of the Upper Band

AND this bar’s Close is INSIDE the Upper band

when the CCI crosses below the overbought (100) line

THEN Sell Short the next bar at Open

(if higher time frame and cci crosses during the formation of the bar then
enter when the line crosses below the overbought (-100) line)

Use “STOP MARKET” to set stop loss – set at Entry + 10¢

( type in entire amount of stop loss plus 10¢ for initial stop )

( example enter short at 20.26, type in 20.36 in the stop

price box )
2. Prepare your first Target – set at the Mean, i.e., the Exp MA (20),

or Entry+50¢ profit

4. Your next Target is the other extreme of the Lower Band

5. Manage your Trailing Stops ( use .05 trail stop for this exercise )