Ideal Setup with the CCI in your pocket

Today in the chat room, relay7, TraderHaven in hotcomm.com there was a question about the ideal setup some were talking about. So here is it again.

The ideal setup is simple is some aspects and hard in others I guess, but for one thing I believe each day is it's own...what happen yesterday is history and can't really be used to view the market today. So using any indicator at the open, I believe, that you are using stale information as the indicator is figuring off yesterdays prices.....if you use a 14 setting....then 3 minutes times 14 is something like 42 minutes behind...the setting at 50 would be even worse.

So I look at the internals of the market to help define a "TRADABLE TREND" which brings me to the UVOL against the DVOL. If more stocks are going down...then I look for a short setup....simple. You can see this in the spread between the two in the form of either green bars or red bars....green I am a buyer.....red a seller. If I had told you this is better then when peanut butter met chocolate you would have yawned.....but when I called it "Secret Sauce"...well I got 80 emails within 48 hours asking for info..

Anyways, with the spread being green I now move to the CCI set to 50/6. Looking for a pullback in what they call the turbo (faster) to a value less then -100. When it turns up that defines what I call a setup bar. That is the second part of this setup.

The third part is simple, if the price takes out the high of the setup bar without taking out the low, I go long at market. What about an inside bar, where the price doesn't take out the high or the low of the setup bar....well it's still a valid setup. Point "A" and "B" both had inside bars, but triggered. An outside bar, where the high and the low were outside the setup bar would cancel the setup.

Of course, "D" triggered nicely and took off, managing this trade is also simple as I drop down to a 70 tick chart and using the stoch I developed when it is overbought I would take half off and move to BE...and see what I can get......that is about it.

Spread is green, 50 CCI is green and the turbo comes back below -100 and turns and then price takes out the high without taking out the low of the setup bar....

HAPPY TRAING EVERYONE