Awesome! Welcome back. If you remember very well, we started talking about 12 technical indicators you should avoid usinging on your mt4 platform. One of them that we wil be discussing today is CCI. What is CCI? CCI is a commodity channel index. It was created in 1980. Remember we talked about if you want to use a cell phone, ofcourse you will not be using cell phone that was created in 1980/85, you will try and use the latest cell phone.
If you want to travel by train, you will not go by train that was created in 1912, you would try to go by the latest one. If you want to buy TV set, you will not be buying old school TV. You will buy a new one. So the same thing you want to use indicator, I mean indicators are not bad, but you need to understand most about these indicators were created for stocks.
You know, there was nothing like Facebook. There was nothing like Amazon. There was nothing like all this artificial intelligence as we have right now when most of these indicators where created.
So one of them is CCI, as I’ve said. So the way I do get CCI is right here on your chart. Now, CCI is used to trade reverser, also trade trend. But the problem with CCI is that it’s too Jackie. And that gives you signal so early or you don’t even get the signal at all. Take a look at this chart, you see it right here. This is okay. As you can see, this is NASDAQ. So right, right in this place it will be tell you, okay, you can go shot, right If you go shot in this place, they can look up to what’s happen to the market. The market went back up, so if you are the one using this kind of indicator are you telling me that right now with CCI off like this ranging around 100 .
So are you telling me that you wouldn’t have place a trade for all this up-trend? Okay, so that is one of the reasons why you need to know that CCI will make you lose money.off like this rain Jen out I’m on grade. So are you telling me that you wouldn’t have pleasing trade for all these trends Okay. So that is one of the reasons why you need to know that CCI will make you lose money.
If you are one of those people that still follow this, if you are a stock trader, maybe it could work for you, if you are a forex trader, I mean, the purpose of this video is to educate you on what is working for me. What I have tested that did not work. You know I started trading Forex in 2006. So right now we are look at around how many years? Fourteen years!. So, I’ve tested bunch of all these indicators and in my over 10 years experience. I want to tell you categorically that if you continue using CCI as a forex trader you are going to continue losing money.
Okay you are going to continue losing money because imagine if you shot this market. Here this is NASDAQ these has been going on like this and of course the market keeps going up like this. Then you would have lost money because if you are shoted this trade right here, let’s assume that you go shop somewhere here. Okay. Your stop loss. Would that be somewhere here and you would that be called out Okay. Maybe. Okay. a gain over here, you gain, you enter another shot.
You put your stop loss over here I mean because of what you have here then you would have know, got out. Okay, you would have cut out. May be over here again, you enter another shot. You put your stop-loss over here. I mean because of what you have here. The you would have got cut out again. I mean also over here, you will possibly be tempted to enter shot and put your stop loss here.
Also you would have stop out. Okay The same thing over here. Okay. You would have possibly be tempted to go shot, put your stop loss here. You would have also lost that trade then also maybe possibly over here you would have be tempted also to go shot somewhere there put stop loss, you would have also lots that trade.
So my friend, if you are still using CCI, watch this video. And if you disagree with what I say, you don’t have to agree but remember that ability to have open mind is what would make some money in this industry. You might have been doing something over and over and over. And If you are not making money with it, I think there’s no problem in you changing – making that shift. Einstein, defined insanity as doing same thing over and over and expect different results. Okay So my friend, I hope you got a nugget from, to this video. Once again, if you have not liked this video, make sure you like it and Subscribe to our channel.