Well, of course I have popped up the CCI which has a setting of 50 and the turbo at 6, this is what I really use to trade with......for the past 4 years, nothing new....no latest greatest yada yada yada. Looking at the 3m chart on the left we have what is called a "hook from extreme", which just means the CCI(50) is above the 200 level. One might think they could just short this puppy and clean up, well I only hope you do some research before jumping on this bandwagon. Those who proclaim to trade without price and just by using a lagging indicator you can predict where the market is going will get run over from this idea. But I wonder, if using price to confirm this extreme condition could improve their odds????
Never the less, when the first bar is printed and it takes out the high without taking out the low....I would look to buy this market, now you have to decide if you need to wait until the close of the second bar or if you can just lean into it. By using a double smooth stoch, when it goes to overbought I would take some off move to BE and start praying that this thing runs...which it does about twice a month.
But what if you wanted to find some way of hanging on.....well when the stoch gets to "A" and you should take some action...either by covering half or just moving a stop in tighter, what if you used the last cycle low of the stoch to move the stop under the last pivot....point "B" for those who need a road map...:). Then each time the stoch cycled down...point "C" and point "D"...would this idea help to make more profit or help to reduce your risk in an orderly manner. There are several ways to skin this cat......so let's explore them over the next several days........
Now before we get started, there is "NO" right way to do this..."NO" holy grail....just what can I do to make this work for me and trade it "MY WAY"....
Happy Valentines Day......love ya mon
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9 comments:
when is the house going to be done?!?! how long has it been??? any new pictures???
I could be wrong and it would be the first time this year but that 50 cci on your chart looks just like my 14 cci on the 3min
I could be wrong and it would be the first time this year but your 50 cci looks identical to my 14 cci on the 3 min.
jim-rainman
In the FT workshops of May 2004 and September 2004 you used an ECO on next for trend. Why did you switch to a 50 CCI?
For all of the 'bad' things that Woodies has it seems they do have some good stuff.
I listened to the 'new' Switcher tool review. The concept looks good, do you do anything like it?
I'm going to keep some stats on several different setups now, seeing something might make it easier to uderstand.
jim, a 70tick chartis maybe 30-45seconds, so that explains why your 14 on a 3min looks similiar to a 50 on a 70 tick
Globetrader - the 50CCI shown was on a 3 min chart.
Sport
good to see you posting charts again.
Though, I traded different from what you did but always learned one or two from your blogs.
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Hi vas
this is jh007 you can find me at #tradingspace
see ya
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phill
as sport mentioned there's different way to skin a cat.... "To be CCI or not to be" there's always a way to take $ from the market. But one got to stay long enough in this game find one's way.
jh007
Yeh -you go short simply because the turbo > 200! I mean it's a counter trend trade, and as such there is a high probability ot failure particularly when you don't review price itself, or even consider longer term trend (50 cci - 14 won't do it).
Part of the problem is using words like 'overbought' and 'oversold' - replace them with 'strong momentum' and 'weak momentum' and one starts to apply trading tools in a lot more sensible and contextually congruent manner to price action - which all aids trading success.
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