Although this is for TF futures, it works as well for all futures. My setup includes double BB at 20, 2 and 2.5; 20, 31, & 62 EMAs; Stochastics Slow of 6,5,3 and 8,3,3 on same plane as price; and most important, is the CCI (Commodity Channel Index) at 14, -45, 45 on a histogram display. I go long (Buy)on the first CCI bar that closes over 45 or Short (Sell) on the first CCI bar below -45(-45 to -200) You can use it to trade everything on any time frame. Once you have looked at enough charts on this setup, the trades and its accuracy will be clear. Trading just the TF on 12-20-10, there were 8 winning trades and no loses for a total of 132 ticks. There is one other aspect of my CCI trading I have not yet disclosed and you can pick it up after looking at the level of the CCI bars and there relationship to one another at reversals. I promise you, this is a winning system. I should add that this works on continuation trades and reversals. Trade with the trend on continuation trades and against the trend on reversals. Particularly on the reversal trades, move the stop to protect gains, as the market can always continue in its original direction and trend, but most often it does not until the CCI shows it is. I use the 20SMA, 20EMA, 31EMA to show the trends. The 20SMA is found in the BBs. My first trade shown above was a short of TF at 9:56 @ 780.4 which was closed @ 777.30 @ 10:15AM.
TF trading on 12/20 using 377 Tick: Sale (S) @ 780.4 @ Close(C) of bar @ 9:56AM & C @ 777.3=31 ticks; S @ 777.6 & C @ 776.6=10; Buy (B) @ 778.1 & C @ 779.8=17; B @ 779.9 & C @ 781.4=15; S @ 784.2 & C @ 781.5=27; B @ 781.5 & C @ 782.3=8; S @ 780.9 & C @ 778.5 (@ 4:14PM)=24 for a total of 132 ticks.
Hope that helps, as that is a big clue. Let me know what you think. By the way...this is my system and it uses very little of any other system I have ever seen. This has been perfected after many many hours on charts. My system, as you will see in time, is worth a fortune.
Last edited by ESFXtrader; May 13th, 2011 at 02:27 AM.
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One of my simplest Trading plans for any time frame and any vehicle: I like 377 tick on the TF, 15 minute charts for FX, 633 tick for ES, & 11 tick on EURO future.
CCI is set for 14,-45,45--Histogram; Trade Setups: Long when CCI exceeds +45 and Short when CCI exceeds
-45. Take profit and reverse trade after 5 bars with less value, ignoring lower bars than the next or one later. Exp: 200, 195, 185, 150, 148, 160, 120, 50: reverse. Even great for scalpers on a shorter timeframe.
The turquoise dashed lines are the Keltner channels.
The Stochastics shown is 6,5,3. I also use the 8.3,3.
I also added the MACD. The BBs, MACD, and Stochastics are used for divergence entry and exit points.
Last edited by ESFXtrader; December 26th, 2010 at 01:59 PM.
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I realize that my chart is pretty busy for some traders, but I am very comfortable with it. On the attached chart, I have removed the 8EMA, Keltner channels, and MAs of the MACD to show just the indicators I have described. If you are not interested in the divergence entry and exits, remove the MACD, Stochastics. That will simplify it further. The 31EMA helps identify continuation trades and market direction.
Markets tend to move between Outer BBs and in a trend from Outer BB to Midline and continue....moreso in some markets than others. I use them as overbought/oversold and on an agressive move where I expect a reversal, which is confirmed by the CCI. I do not trade off them when the price follows the BB up or down.
Last edited by ESFXtrader; December 26th, 2010 at 04:26 PM.
Reason: BB explanation
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