EURUSD, Daily, 2012 April 27
Daily Divergence.
Short @ 1.3255 (3/10)
Daily Divergence.
Short @ 1.3255 (3/10)
Two charts, Two scales, One window 2 replies
The Tube - flexible channel trading 61 replies
the tube no. 3 5 replies
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DislikedHi Forexcube,
I am just trying to understand your 1min trading.
The 1min example that you placed at the top of this page.Ignored
DislikedHi Forexcube,
I do understand D1 chart is not the same due to difference broker. However, my broker (FXPro) seems vary from yours (in terms of CCI).
My chart cant see the CCI divergence #1341. Is it normal?Ignored
DislikedEURUSD, M1, 2012 April 24
Long @ 1.3192 (5/10), Target @ 1.3243 (DR2)Ignored
DislikedHi sam2vt!
I would opt a broker which fits best for me.
I'm discontend with all brokers, but FXPro is real bullsh*t!
Aren't you feeling uneasy with them?
FXcubeIgnored
DislikedIgnored
DislikedYesterday AVG: -3.200€
Wensday AVG: -3.000€
Yesterday gains was: 264$ 3.63%
Today gains (been out since this morning posts): 703$ 9.64%
This week gains: 1131.80€ 17.99%
Floating DD is not from this strategy ... they are a 1.0 Lot sell @1.3040 -1700€, and others ops alone from other systems, real DD from this strategy is under -380€, so it's ok as far as I gain more than 50$/day and I think that I'm doing okIgnored
Many traders would have been afraid to enter short at that time, thinking that most of the selling had been done, but we had faith in our strategy and followed the setup. Prices then consolidated a bit and trended lower until 1 p.m. on March 27. Less than 24 hours later we were able to hit our first target, which was a very substantial 74 points. Again we moved our stop to breakeven. The pair proceeded to bottom out and rally, taking us out at breakeven. Although we did not achieve our second target overall, it was a good trade as we banked 74 points, without ever really being in a significant drawdown.
http://i.investopedia.com/inv/articles/site/FX-CCI4.gif
Figure 4: Do the Right Thing CCI Trade, EUR/JPY Source: FXtrekIntellichart
When "Do the Right Thing" Does You Wrong
Figure 5 shows how this setup can go wrong and why it is critical to always use stops. The "do the right thing" setup relies on momentum to generate profits. When the momentum fails to materialize, it signals that a turn may be in the making. Here is how it played out on the hourly charts in AUD/USD. We note that CCI makes a near-term peak at 132.58 at 10 p.m. on May 2, 2006. A few days later at 11 a.m. on May 4, CCI reaches 149.44, prompting a long entry at .7721. The stop is placed at .7709 and is taken out the very same hour. Notice that instead of rallying higher, the pair reversed rapidly. Furthermore, as the downside move gained speed, prices reached a low of .7675. A trader who did not take the 12-point stop, as prescribed by the setup, would have learned a very expensive lesson, as his losses could have been magnified by a factor of three. Therefore, the key idea to remember with our "do the right thing" setup is, "I am right or I am out!"
http://i.investopedia.com/inv/articles/site/FX-CCI5.gif
Figure 5: Do the Right Thing CCI Trade, AUD/USD Source: FXtrekIntellichart
The Bottom Line
"Do the right thing" allows traders to trade breakouts confidently and successfully. CCI can put you on the right side of a trade when many others are trying to fade the price action. However, this setup only works if you apply it along with disciplined stops to protect you from major losses if the expected momentum fails to materialize.
Read more: http://www.investopedia.com/articles...#ixzz1tQwsWCAe
Read more: http://www.investopedia.com/articles...#ixzz1tQzoJAR9
Here's an example of this method applied to Sun Microsystems (SUNW):
http://i.investopedia.com/inv/articl...ingTrades3.gif
Figure 1: Chart courtesy of StockCharts.com
Here we can see that one cycle (from low to low) starts at Oct 6 and finishes on Aug 9. This represents roughly 225 trading days, which, divided by three, gives a time interval of about 75.
Applying the CCI Since it was invented, the CCI calculation has been added as an indicator to many charting applications, eliminating the need (thankfully) to do the calculations manually. Most of these charting applications simply require you to input the time interval that you would like to use. Figure 2 shows a default CCI chart for SUNW:
http://i.investopedia.com/inv/articl...ingTrades2.gif
Figure 2: Chart courtesy of StockCharts.com
Note that the CCI actually looks just like any other oscillator, and it is used in much the same way. (To learn more about oscillators, see Getting to Know Oscillators.) Here are the basic rules for interpreting the CCI:
Possible sell signals:
Possible buy signals:
Figure 3 shows another chart of SUNW, but for this chart, the time interval of 75 (which we calculated above) was used for the calculation:
http://i.investopedia.com/inv/articl...ingTrades4.gif
Figure 3: Chart courtesy of StockCharts.com
The red arrows show turning points that emit sell signals, while the green arrow shows a turning point emitting buy signals. The short blue lines, indicating the impending trends, show the divergence between the CCI and price.
Always Get Confirmation It is extremely important - as with many trading tools - to use the CCI with other indicators. Pivot points work well with the CCI because both methods attempt to find turning points. Some traders also add moving averages into the mix. In Figure 3 above, you can see that the 60-day exponential moving average (violet horizontal line) provides a good support level; however, determining which MA level is best varies by stock (to learn more, see Introduction To Moving Averages ).
Another possible supplement to the CCI is the use of candlestick patterns, which can help confirm exact tops and bottoms throughout the CCI's "selling period" (time in which it is above 100) or "buying period" (time in which it is below -100).
Conclusion
The Commodity Channel Index is an extremely useful tool for traders to determine cyclical buying and selling points. Traders can utilize this tool most effectively by (a) calculating an exact time interval and (b) using it in conjunction with several other forms of technical.
Read more: http://www.investopedia.com/articles...#ixzz1tR0bMj5X
DislikedSlow week didn't hit goal of 1.5% a day but is was a funky week and I didn't get in as much screen time as I would like 80% win stinks too was experimenting.
Account up over 300% since 01-20-2012 Can't complain too much and equity is getting back to a comfortable zone
Have a great weekend
Cheers!Ignored