CCI 18 crossing +30 for long and -30 for short. (or any other one you like after doing back and forward testing, like change of color at 14Zlema,1ADXV)
1. Look for short/long trades based on color of Zlema34 (for a conservative method only, ignore Zelema34 for a more aggressive style)
2. Wait for the black diamond to show up, it’s an advance alert that a trade in getting ready to be triggered
3. Look at the direction of the 3,14,3 K line, it is the clue for long (pointing up) or short (pointing down) DO NOT GO AGAINT IT!!!!!
4. 3,14,3 above the 50 line pointing down is what we like to see for a short trade(See attached pic.)
The longer the line has to travel before getting to the OS is potentially more ticks to gain.(opposite for a long position)
5. If 3,14,3 is already in OB/OS territory, no trade.
6. Wait for the trigger to initiate the trade
7. If using a runner, in my obsirvation, the white dots area can serve as a safe SL and than keep moving you trailing stop 5 ticks at a time.
1. I trade all in all out with no runners
2. I look to gain 10 ticks a trade.
3. Will take 5 ticks if 3,14,3 is already above 50 line for long or under 50 line for short when open the trade (Aggressive trade)
4. If 3,14,3 line went into OB/OS territory and stay there flat, I will stay in the trade up to the turning back down/up crossing the 80/20 line and may gain more than 10 ticks per this trade.
5. There are around 30-40 setups on any given trading day. No reason to try to get the last tick from each one.
1. When Fed Chairman or Treasury Secretary testify in front of Congress or give a speech, NO TRADE ZONE. Every word they say can spike the market dramatically.
2. Every Wednesday at 10:30 there is OIL inventory report coming in. (most expected report during the week for CL) Better to stay a way 15 minutes before and get back after 10:31
3. Stay on sideline 2 minutes before daily economic news release (daily and weekly listing on many financial web site)
4. Price usually respect the MurryMath lines, look for it when in a trade as it may change direction or stall around them. If stall, better be safe than sorry, take the ticks and get out.
*** This information is based on my observation and my personal trading style and is posted for educational propose only. It is not a trade recommendation.
Last edited by Big Mike; September 4th, 2009 at 10:45 PM.
The following 14 users say Thank You to tzachi for this post:
Thanks tz for explanation. I watched the chat all last week and know you and others put a lot of time into this. Great job.
By the way you mentioned CCI 18 as a trigger but I didn't see it in your chart. What goes in panel 2?
I used to use CCI 18 cross +/-30 and now I am using a self developed one.
Try to play with the CCi,RSI,Stocs cross 50,Zlema/HMA change of color or any other tool you find working for you. As long that you TRADE IN THE RIGHT DIRECTON, take your profit (around 10 ticks for a 4 range chart) and you have a SL you will be OK.
Most triggers are very similar in generating the entry call (a bar early or late). The key is to wait for it AFTER a black diamond, go with the 3,14,3 DIRECTIN and have a SL in place.
Last edited by tzachi; August 29th, 2009 at 05:41 PM.