Akuma99 Not So Squeezy Journal

http://img98.imageshack.us/img98/9480/chart53ye.gif

Well it partly is, however it is missing two main components, the main one is there is no blue zone signal from the Bollinger Squeeze yet, secondly it is important you use a trigger to confirm your entry, whether it be a CCI formation, stochastic, or price action itself. I wonder whether it will look for the 200SMA to be the place to provide the signal, but if it does we then have the 100SMA in the way for another move up, so personally, I would trade it with a smaller lot size, or wait for it to clear that 100SMA.

That is just my thoughts anyway

Did I miss it or not remember maybe. What do the colors mean on the CCI red/green/blue?

Nevermind. I went back through and found it.

Hi Akuma,I noticed that u use 100 and 200SMA on your chart,is it better than 100 & 200 EMA? Just need some opinions.

Is this the kind of setup to look for?

http://img151.imageshack.us/img151/4471/chart51qr.gif

Yep that was exactly what we are looking for, there were a lot of pro's for taking that entry, although currently things are heading back to break even, unfortunately I was sound asleep at the time so I didn't take that signal, above is the chart with some notes.

The only thing of concern with the EUR in general is the weakening of the trend as shown by the rainbow compressing slightly and some wishy washy recent action. Still the downtrend remains, and it may re-strengthen so I would still have taken the trade. Well spotted.

Nvm,I think it is because Rainbow EMA already contain them.

akuma

going over your thread, ive gotta tell you its amazing the things i learned and added to my own system that has given me better confirmation for signals

thank you

so how big is the yacht? lol

I use the 100SMA and 200SMA as support and resistance areas for two reasons, one because in backtesting they seem to work quite well, and two, cause so many others do, which makes them work even better The 100 and 200 EMA may well work just as well, each to their own.

boxingislife, thanks for the kind words, as for the yacht, well it is "this big"

Greetings Akuma. Stopped by to see how the trade journal was going : ) and the above quote caught my eye.

When i first saw the CCI in action is was pleasantly suprised at it's signals. Then out of curiosity, i adjusted the settings to match a given MA on my chart to get a better idea on what the CCI was showing me. Once i realized that the ZLR was actually telling me what price action was doing in relation to the same MA, i watched the CCI for a few more days and then went back to watching the PA of MAs again without the CCI. Do you find that PA is often times enough of a "trigger" for your entries without the CCI? Just wondering for your trading style.

: ) Thom

Hey accrete, nice observation on the cci and it's parallel to its corresponding EMA. If someone has developed their skills to the point they feel comfortable using price action, candlestick patterns etc as triggers, I would recommend that technique beyond all others, after all price action is as direct to the source as we are going to get. I am moving away from indicators as triggers, although not all the way there just yet, and even with the CCI as a trigger, almost always there is a candlestick formation that coincides with it that could be used as a trigger also.

I never take a CCI trigger without checking what price is doing, one day I anticipate I will discard the CCI all together, the main thing is with this system is to wait for a trigger of some sort, whatever it is you use, as taking trades on blind faith even if everything else matches up, reduces the reliability quite substantially.

This is the third time reading through the thread. I have a couple questions to ask if you don't mind. The answers arer probably in here and I have overlooked them. First, When you talk about momentum, what do you use to indicate it? Is it how the MA's are fanned out? Second, For a short to be triggered, does the indicator have to be below the 0 line? I know it needs to be blue but, just wondering if it needs to be below blue line or is there a specific area that would be better? Could a sell/buy be signaled if blue had recently changed color? I have more questions but, will leave it at that for now. Also, sorry if the questions don't make much sense, been a long day. I'll wake up tommorrow and probably wonder why I asked these questions because it is very self explanitory but I would appreciate an explination. Thank you Akumma

Hi renasdad, no probs about the questions. Ill try to answer them one by one.

In terms of momentum, yep I have answered that one previously here (http://www.forexfactory.com/forexfor...&postcount=113), but that's ok The fanning of the Rainbow is an indication of trend strength and exhaustion, not momentum.

In terms of triggers, if you are using the CCI as a trigger, then yes a short trigger is the CCI crossing the zero line from above, a zero line cross. To be honest triggers really can be personal things, if you find a change in colour seems to provide good results, then it is just as valid, I like to stick to the basic rules to get a feel of where price is and what environment it is sitting in, and then look for triggers after that using whichever method tickles my fancy at the time, whether that be a CCI trigger, and inside bar, candlestick pattern whatever, really up to you.

Hope that helps, get some good rest

Thanks for the reply. One more thing. I am at work right now and do not have access to the charts. But, when I have a question, I want to ask it before I forget. How about the daily high/low. Is there an indicator to tell me what it is? Thank you so much for being patient with me.

Hi Akuma,
Thanks for your posts. It helps alot of newbies like me to learn from your
analysis charts .
Could you please explain one question related to your target : 168.2% number . How do you get that target number?
Thanks again.

161.8 is a common fibonacci extension level, others are 127.2 and 261.8, they can serve as good indications of where price will rest, a perfect time to take profit.

In place of your pivots , try this one.

Short on GBPUSD (demo only)

bounce off confluence 2 fib levels, pivot and 50 ema - 7am GMT
plus nearly zero bounce on cci with downtrend in place.

Just for educational purposes.

For those that want to see what the above trade from minute looks like here is the chart of what I think he is looking at:

http://img89.imageshack.us/img89/5089/chart58eo.gif

Hi Flint

Can you advise what the various lines produced by this indicator mean?