Ken Wood developed Woodies CCI indicator. It is easy to use if you follow the rules he outlined. With the MACD, you will need only find graphic patterns, draw trendlines, and catch breakouts with the RSI. The best entry points with Woodies CCI can be found when you observe the chart carefully and listen to the principles.
Stock trading was the original purpose of the Woodies system. However, traders have tried using it for other purposes. Nowadays, the Woodies CCI is successfully applied to all markets.
A Guide For Adding The Woodies Cci Indicator To The Iq Option Chart
Begin by signing into your IQ Option trading account and choosing a financial instrument. Choose a chart type and period for your chart. From the left-hand side of the platform, select the indicators icon. You will see several tabs appear. Then select the Momentum option. In the list of analysis tools, Woodies CCI appears on the right side.
You can also start typing the name of the indicator in the search box.
Here are the steps to access the IQ Option Woodie CCI indicator
CCI Specifications for Woodies
Immediately below the price chart is a window that shows the Woodies CCI. This indicator is constructed based on two CCIs. The first has a period of 14 and is called a CCI. CCI Turbo, the other option, has a period of six months.
The three horizontal lines can be identified as a baseline, a support line, and a resistance line. In addition to the Woodies CCI, the histogram is an important part of its calculation.
The Definition of a Trend
Those markets where Wood’s method is best applied are trending markets. Trends can be identified by histograms. You should pay attention to the color and placement of the bars in the histogram. The bars should be green and above the baseline if there is an uptrend. You can identify a downward trend by looking for red bars below the baseline. A red histogram below the baseline signifies a downward trend
IQ Option and Woodies CCI Trading
Digital or binary options as well as CFDs can be traded using the Woodies CCI indicator. The simplicity of the indicator makes it very popular. To predict the direction of a price, you don’t need to search for complicated graphic patterns. Just follow the rules in the following paragraphs.
When you follow the trend, you have a better chance of making a profit. Many traders have lost money when they traded against the trend. It is natural to experiment with the system against the trend once you gain experience and some money using the trend-following method.
With Woodies CCI, Here are Four Points of Entry
With the Woodies CCI, your transactions can be identified at entry points. With the Woodies CCI indicator on IQ Option, I will show you four best times to enter a trade.
From the Woodies CCI indicator, you can get a very basic signal. Histogram bars indicate the trend before seemingly returning to baseline. However, the bars instead of crossing the line, they turn in the opposite direction. You should enter the trade when this occurs because it confirms the trend.