CCiIDT

!!!UPDATE!!!


Topic Closed

Learn from your failures - and don't trade Live till your master of your mind.

I have blown my Live account - as many other traders - Teh system proved to be fine, but I am failing mentally to follow my own rules. I am not gonna update the thread, to make others get to the same shit as I am now. Lucky that money was already my profit from aprevious account, so I am actualy at 0% now - but that was enough, I am gonna start over again.... Once....
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Dear Traders,

Let me introduce you the secret behind the Divergences that I am almost sure you have not seen before.

Let me add, that this discussion/trading system is mostly for those who basically understand the CCi itself and the divergences.

For a fast reference, let me attach a picture and a short description of the "generally" known divergences.



I think the picture is telling you everything you need to know for your basic tradings.

But what you are about to see below is a very special way of understanding the divergences. I would say, they are great indications for resistance or support levels. And these indications are coming sometimes 20 candles before, so you have time to setup your entry.

Let me show you an example of a basic Divergence setup, then I'll show you the "behind the scenes" part.



So here you can see a great fall after a strong up movement, the divergence clearly indicates the down movement. As a home work, I am intrested how would you trade this? When would be your entry. (Leave a comment later on with the title 1# example, and of course you can draw your entry)

So, I showed you how is it looks like based on the big book. Now let me show you something else. This little example holds 2 more things for us.



So this one shows us a hidden bullish divergence that realy gave another pusing to the price. It went up as it should. (I am also intrested what would be your entry for this long?, leave a comment just as for the 1st example if you wish)

So, We can say that both divergences worked as they should. But let me now show you, something, that I believe is the real reason of that "fall".



So basically I have just expanded the trend line of the hidden divergence and when the price broke it, the short trade got into action.

The main Idea is now in a few words, extend the divergence.

Entries:

Long: Divergence set on "tops/peaks" both on chart and indicator
Short: Divergence set on "bottoms/lows" both on chart and indicator

In the next posts I am gonna add some screens about these setups so they can be examined.

The main Idea behond this thread is to find together the best way of trading this method.

At the moment what I do is as a SL I am using the last Peak or Bottom for my trades.

The TP is a bit hard to describe, but I'll show it on my screenshots.

Stay with me if you are intrested.

So to make a good view for your self on the divergences, I recommend:

- CCi period 14 or 50, mode Close
- Price with Line Graph
- Or with EMA 1 Simple mode Close and use the candles with a less visible set up so they are not disturbing your eyes.

To count and set up TP and SL:

Use the Fibo tool

Value 0 SL
Value 100 Entry
Values 200 TP

So like this its easy to measure the 1:1 ratio for your entries. Most of the times its better then that!

So as the TP. I am trying to set the TP as follows.

- Take the period between the first point of your divergence until your entry, and based on the move you want to make, check what was the lowest or the highest point and measure it. That values will be your TP. It works perfectly on our example below:

I just want to show how the 14 period looks like as well. I usually check both for more signals. The best is when you get the same signal on both.


The 14th period makes more signals, but sometimes these moves are not that strong. I found small signals more effective on the 50th period then a strong on the 14th. So its good to check both.

I Will post some examples of these trades:

Here comes a long a longer term trade. Which payed off very well:

We got a signal, and a support level, many many candles before. All we had to do is jsut wait till it breaks.

Let's see the same situation on the 14th period: (Much closer Entry) TP/SL is based on the Period 50

Two pretty recent short term trades, with prety good payoff.

And the latest petterns on the EU:

Last Post for tonight:

Other Pair, Higher TF - Same results: based on the TP ratio no SL

I'll keep you posted with other examples and with trades. (Please note as a full time worker I might be in some delay. But stay tuned)

Hi Tools,

Good material. I subscribe.

It´s possible for you to show me in the attached chart how you draw the divergence lines to find an entry point, thank you.

Thanks for the share.

So to confirm, you say enter when price broke it? Broke it and closed to confirm the break was real? Or break it by a few pips which in this case your line graph doesn't show and it also wouldn't show it after the fact if price broke, you entered and then it reversed on the same candle (this is when it wouldn't show as a break on the line chart)?

jt

Interesting thread and examples. Looking at divergence in hindsight is great but trading it on the right hand side of the chart may prove a bit more difficult. Awaiting your insight on how this works on real time charts.

A not so powerful move, but TP with 10 pips. Measured the highest point from the entry and took it as the TP. I am expecting much better moves, but it was a calm period.

Edit: Sorry I forgot to mention that the TL was set for the 14th period, I've forgot to change it back for the screenshot.

Hello!

I have tried to make it for you, somehow your CCi is a bit strange for me, looks as smoothed. Mabye because of the timeframe or by the pair itself.

I hope this helps.

Actually, Closing under it is the best, but you when you are near to enter a trade, you can go down to lower time frames and make decisions by your own stategy as well and maybe enter when it just brokes the TL.

I am recommending this strategy as an extra for your own trading style.

This topic is meant to be a discussion as well how could we improve this way of trading, what can we add to make better TP's and smaller SLs.


Good to have you onboard =)

A recent pattern on GBP USD.

The attachment is not visible

Fixed it =)

2 bad news for the EUR - CCi new it before - TP is small due to the current way of TP I am using. But the movement is impressive.

You can ignore the lower Blue TL. I used it for other reasons, the TL drawn on the CCi is the upper TL on the chart.