Before I start trading I want to understand how CCI interacts with price movement. The idea is to indentify high probability setups. The attached chart shows how CCI20 and CCI6 react to price action.





What I want to identify with CCI20 and CCI6 and trend lines:

• Trends
• Short term entry points
• Long term entry points
• Change in trend direction

What I indentified on the attached chart

• The spikes of the CCI6 while CCI20 is below zero shows excellent entry opportunities for short term gains
• The spike of CCI20 above the spike of CCI6 were excellent entry opportunities for longer term gains.
• CCI20 and CCI6 above 50 or below -50 indicates a strong trend.

Of course, this will be verified moving forward to see if these setups are repeatable.

SD

To continue from the previous post; I am looking for high probability entry points. In the attached chart there are 5 entry points to go short on 5/27/2011. The second entry point from the left is the most volatile because it is a top of a 60 point run.



What I identified on this chart:

• The spike of CCI20 above the spike of CCI6 is a good indicator of a reversal.
• CCI6 crossing below zero should be used as the trigger for entry.
• Entries into positions on the top of a sustained run can be tricky because of volatility. See second line from left. A larger stop would probably be required or waiting for a couple of down ticks to confirm entry.
• Edit: should be noted in each of the entries CCI6 was to the outside of CCI20. CCI6 then crossed over CCI20 while CCI20 continued to rise.

Other notes: I am having a hard time identifying long entries. Will work on identifying these in the next entry.

SD

Below is a listing of the best times to trade the Euro for my trading style (short term) with notes.

5 am est to 2 pm est
8pm est to 12 pm est (if volatility exists) (excludes Sundays)

Between 2 and 5 est the euro can become really flat. If you are in a trade it may be 4 or 5 hours before it starts to move again.

The night session can be flat in which case price action does not occur as expected. It can also be very slow. Sometimes it will take a couple of hours to move 20 ticks.

However, if there is a spike in price action between 8 and 9 pm est then it there will be a good oppourtunity to get in on a couple of good trades. Again take caution, you should only enter high probability trades.

Note on Sundays: If there is news to drive the market then a good trade can be picked up. However, one should be aware of the volatility which can occur. Otherwise there is just alot of back and forth in the price action with very little direction. This is easy to see in the Better Renko because there price will be in a range alot of side by side bars.

SD

Focused on long entries today with a short entry as well.

What I identified on this chart:

• a strong trend occurred between 12 pm and 2 pm est.
• Direction change was marked by CCI6 crossing CCI20
• Entries were marked where CCI6 crosses zero.

There are alot of lines on the chart. Makes it a little messy. I will try to figure out a better to display it on future charts.

SD

In addition to my journal I will be teaching how to use my trading method here:

CCI Simplified Evaluating new data providers. The attached chart is from Friday. Ugliest Better Renko chart you will ever see! :ahhhhh:Prices were all over the place. Used broker data from MBT. SD

SD

in the attached charts you will find a long term chart and short term chart for 6-6-11.




What I identified on this chart:

• there was a double top last night into the morning
• The current up trend ended
• A new downward channel has begun
• A longer term trend line was broken late this afternoon
• There was a well defined downtrend
• between 8 and 12 pm est there was a chop zone.
• there were 2 substained trends lasting more than 2 hours
• A weak CCI20 after a bounce off a trend line is a good indication a trendline break could be coming.

Trade entries with notes can be found here:

CCI Simplified There are 2 charts tonight. Long term and short term. The short term chart has lots of notes on it. Double click on it to get to full screen Overall Observations of the chart can be found here: ( Entries today: Entry arrows and notes are …

Lots of detail on the chart but it looks cleaner this time around.


Let me know if there is too much detail to be useful. Thx!

SD

Thanks SD--good charts

see attached chart for 6-7-11.

Potential trade entries with notes can be found here:

CCI Simplified One chart today Overall Observations of the chart can be found here: Identified Entries today: Entry arrows and notes are in Yellow There were 9 possible entries today 4 were during the uptrend and occurred on the pullbacks. 5 occurred …

What I identified on this chart:

• Downward channel was broke around midnight est
• New upward channel was formed.
• a solid trend occurred between 12pm and 4am
• Sideways (chop zone) occurred between 4am and 12 pm est.
• some of the direction changes were not well defined.
• peaks in CCI20 were lower as the upward trend continued. This showed trend was weakening.
• See additional notes on chart

SD

I am starting to map out my trading method over on the CCI Simplified thread. You can check out my first entry here:

CCI Simplified A wise trader once told me going against the trend is like trying swim upstream in a fast moving river... its kinda pointless. The first step to the CCI trading method is to determine what direction the market is going. For this we are going to use …

Here is a high level overview of topics to be covered:

1. Determine market direction.
2. Look for different types of entries using CCI6 and CCI20
3. Enter trades based on CCI6 and/or CCI20 trigger
4. Exit the trade

SD

I have been wanting to do this for a while; In the attached photos you will see a comparison from top to bottom of 5 min - 6 Range and 4 Better Renko during a trend of the same time period.

What I like about the Better Renko is the bars are cleaner and there is less movement. Trends are easier to identify.


There are 2 charts:

• first contains stacked charts
• second contains all 3 charts super imposed on top of each other.

SD