Although I cant for the life of me trade this method with a tick chart, I did incorperate the CCI used here into my price action 5 min chart and it meshes perfectly with giving entry signals almost exactly with my original method using only price. It's great for confirmation. Thanks eveyone for all the work with the CCI counter and OP for bringing CCI to my attention.
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I'm pleased with the method I use with CCI. It was formulated by someone else who has moved onto Fib trading.
1. I put a 34-CCI Histogram under the price action. Different colors for above and below the Zero Line. The histogram tells me the trend.
2. I put a 14-CCI line over the 34-CCI Histogram.
3. There are 3-entries.
a. If using a 15-minute or longer chart, then enter at the point the 34 (or 50) CCI Histogram crosses the Zero-Line.
b. Take the first hook after crossing the 34-CCI Histogram
c. Wait for the 14-CCI to hook into the opposite side of the histogram trend. i.e. If the trend is up, then one would wait for the 14-CCI to get to -150 or lower. Wait for the 14-CCI to come back higher than -100 before going long.
This is my 1st post to Big Mike's and since I'm a simple kind of guy, don't know how to create an URL of the example chart I saved for this post. BTW I trade 4X and something is always trending over there.
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I received a PM regarding my earlier mention of the CCI method I use. Big Mike requires 5-posts in order to send a PM. This is my 2nd post so I'll respond on the Forum.
This is the PM (in part) I received:
"I am a little confused regarding the entrys. What I am gathering is that one would wait for the histogram to pass 0 in one direction or the other. Once this is done (for example sakes can we say histogram comes up from bottom and above 0 for longs. Also is there a particular amount of bars to confirm this.) So once this is done we now wait for the 14 line to go back down past -150 then hook back up past -100. JD there is one criteria that you had 34 cci (50) may I ask what this means. What type of stops and exits does your method have, if I may ask. "
There are 3-entries. The post above is combining the 1st and 3rd entries (I think that's what it's doing). The 1st entry is when the 34-CCI (or 50-CCI) Histogram crosses the Zero-Line. I use Limit Orders that don't always get filled but there are always other trades down the road. Woodie and his followers like to wait until there are a certain number of bars after crossing the Zero-Line before taking a trade but that's with the 14-CCI and since I'm using the 34-CCI, I don't feel the need to wait.
The 3rd entry is after the 34-CCI is solidly trending on one side of the Zero-Line. I wait for the 14-CCI to go below the -150 (if looking for a long position) and then hook back above the -100 (e.g. -92.89) and then go long. My stops are generally 30-40 pips subject to recent tops and bottoms. My profit target is generally 40-50 pips (with a daily goal of a net 100 or net 500 for the week) unless the most obvious trend-line has not been broken, in which case I let the position run its course until the Trendline Break. I might go from a 15-minute chart to a 30-minute chart and develop a trendline on the 30-minute to see if that will allow me to stay in the position longer.
I also use a 5-21 (no moving average) MACD histogram for confirmation of the crossing of the Zero-Line. If the Zero Line is crossed by both the 34-CCI and 5-21 MACD, I feel fairly confident. NB: Trading with real money should be preced with beaucoup hours of screen time. The point being that one cannot blindly take every trade that is a Zero Line Cross. Sometimes the market is in a holding pattern and until it gets out of its Horse Latitudes, it's best to wait until the 3rd entry presents itself or look at another market.
Hope this provides greater clarity.
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you don't need url, you can use prtscr key then save it in paint as gif or use jing project to capture the chart image or right click on your chart to see if it allow you to save chart image. Then use manage attachment button to attach it to your post.
I am amazed how far my thread has come. Yes, the system still works, but I have made some small changes to it. I will post the setups for yesterday afternoon and evening and see if you can see how well it is doing. I am using the RSI 7,50, 50 to confirm my trades and it works very well. The RSI must be <50 for shorts and >50 for longs. I have also added another CCI of 21, -200, 200 for the purpose of catching Vs or inverted Vs where the CCI extends beyond -200 or 200. In these cases, I still use my overall method to enter the trade. It is very accurate. Avoid chop time. Pay attention to the price action on a longer time frame to get a perspective of where it has been. Become a trader and perfect your trading. Try different Tick charts and time frames to find what works best for you on whatever you trade.The charts are marked and show the entries for ES using 610 Tick charts, which is my favorite on ES. Beside that chart, I also use a chart of Range Bar 1, 4 tick and more often than not, most winning trades agree on the entry, within a tick or two, using the same indicators.
Hope this helps. I considered placing this in the Elite area, but I understand what it is like to struggle in trading.
Big Mike offers the best platform for traders to learn and discuss openly all trading.
Good trading to all.
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There is one thing I would ask and that is that if this thread has helped you become a successful trader and you are yet to join the Elite group, DON'T YOU NOW THINK IT IS TIME TO JOIN?
Mike is doing a great job here offering the best platform for every trader to learn and it cost time and money. What he does here takes away from his trading and is so beneficial to all those here.
Thanks for your consideration and may God Bless you and your trading.
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I received a PM and since I have been negligent and need to get my post count up, I'm responding in the forum.
My win average is 83% but . . . since trading is always unique to each individual, we pick what nuances "speak" to us. Those same nuances may not speak to anyone else (certainly not to Woodie). For example, if the 14-CCI is over 150 and hooks back into the 34-CCI histogram and the histogram is over 100 (for long exits) and still rising, I stay in the trade until the 34-CCI histogram hooks down. That will almost always get me another 15-25 pips. It's more complex than the simple description I've given it. I just know what jumps out at me and haven't really taken the time to write it down. There are things in life like that.
Therefore my method or anyone else's isn't easily qualifiable. Although using trendlines is common in CCI, I also use a 5-13 MACD and a 50-ROC along with my 14-34-CCI indicator. CCI doesn't always give a clear indication for entry or exit so I use the other indicators for earlier entry, confirmation etc.
NB, the 83% is misleading because a win can mean 5-pips or 105. However I will often take a small win prematurely because my psyche likes a high percentage of wins. For some reason that is more satisfying than making more money than having say a 33% win rate. Feeding the trading soul the food it needs is how I stay successful.
I don't care for any indicators on the price action except for MAs. Often I use Zero-Line crosses and that doesn't work well for me if it's on the price action.
Again, it's a personal preference, but I prefer most of my indicators in histogram form.
Many times I'll see diversion after the pair has had a good long run so I'm suspicious. I'm not always best off by staying away but most often I am. It's something that can't be taught, it's something that develops with 1000s of hours of screentime.
Do you have trading groups in Greensboro? I can send you charts if you like. JD
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