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Zero Line Cross

By Adam Milton, About.com

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Wait for the Zero Line Cross

Zero Line Cross Chart

Wait for the Zero Line Cross

Wait until the 50 bar CCI crosses the zero line, while the 25 bar CCI is on the correct side of the zero line, and the price is on the correct side of the moving average.

This means that if the 50 bar CCI crosses above the zero line, the 25 bar CCI should also be above the zero line, and the price should close above the moving average, and vice versa if the 50 bar CCI crosses below the zero line. If either the 25 bar CCI is on the wrong side of the zero line, or the price is on the wrong side of the moving average (i.e. CCI crosses above, while price closes below the moving average), the trade has not met its requirements, and should not be entered.

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