Trading is as simple as ABCD

Hi navk

I think your avatar says it all right now, doesn't it????

To answer your question if you want to trade the 5 min as your base chart and use the 14 as your base CCI period then all you need to do is times your base CCI 14 by whichever timeframe you want above. Eg if you want the 15 min then as theres 3x5 mins in a 15 min period its 14x3=42.

If you want the 60min CCI on your 5 min chart then as theres 12 periods of 5 mins in an hour its 14X12=168.

So for a 5 min chart set the 3 CCI's as 14,42 and 168. That means you will be looking at the 14 period CCI for the 5 min , 15min and 1hr timeframe on your 5 min chart.

Hope that makes sense???

The idea behind the strategy is to trade the 5 min chart in the direction of the higher timeframe momentum so that means when the 1 hr CCI (168) is moving from oversold to over bought you should be taking only 5 min over sold buy signals from your 5 min CCI(14).

A buy signal is when the cci crosses from below -100 to above and a sell signal is when the cci moves from above +100 to below. Basically above +100 is overbought and below -100 is oversold. The great thing about the CCI as a momentum indicator is that it has no limits to its overbought or oversold states, they just get bigger and bigger. Thats why I use it as oppose to other momentum indicators that have a roof and floor to their overbought and sold levels.

As I explained earlier I am keen to see a very oversold or bought market on the higher CCI give us a sell or buy signal then look to take the next 2 lower timeframe CCI signals in the same direction as tighter stops so less risk but the same upwards rewards so bigger RR's.

And that my friend, bigger RR's, to me is the secret of a successful trader. Bigger winners than your losers a lot bigger if we get it right.

In the simplest language I can put it when I trade the 1 min chart I am looking for the 15 min to go very oversold then give me a buy signal, crosses up from below -100 level, then look for the first oversold signal on the 1 min and buy it. Usually the first 2 signals are the best eg Elliot wave 3 and 5.

Heres a chart of GBPCHF from earlier today showing exactly what I'm talking about. notice the market structure confirming the reversal, thats very important don't just buy everytime the 15 min goes over sold. You have to wait for the market structure on the 1 min to confirm the turn.

If you want to trade the same setup on the 5 min then I would look for the 1 hr CCI (168) to give you a buy or sell signal then take the next 2 on your 5 min CCI.

One word of warning once your 1 hr goes overbought with the new trend be careful taking any more 5 min CCI buy signals as upside 70% of the time could be limited but I have taken them if they are preceded by a strong move up AB leg in front of the pullback BC leg.

Hope thats helped...

Nice explanation.
I understood now.

I am here..yes, you know my avatar

Let me follow you and make some pips.

My 5 minute chart set up.

Looks good to me now wait for your 1 hr CCI (168) to go way overbought or sold then wait for the reversal signal on the 1 hr CCI , crossing 100 levels, then look to take first couple of the 5 min CCI's overbought/sold signals. check 5 min market structure only buy DB's or HL's only sell DT's or LH's.

One other thing I do now is to look at the 1 hr CCI turn and try to work out which wave it is in the trend eg wave 1,3 or 5 and trade accordingly, also targets can be set from the 1 hr ABCD move too, use 2 orders one to exit on 5 min move the other to hold on the 1 hour move.

Good luck happy trading........

OB/OS is not my idea. Trade in the direction of trend. The chart here which identifies daily trend for today.

This is the last three day chart. EC

Does this qualify ob/os here anywhere ?

Hi navk

Yep either way is fine but I just believe that the trends you're after will set up just after a strong move one way or the other so the overbought/sold areas highlight these times for us. A strong trend on the CCI is defined by staying over the 100 levels but the problem is that these 100 levels also denote being overbought or sold by definition. So just be aware of that and look for price action to confirm the trend is still in tact and not about to reverse.

If you look back just a bit further on your chart you would see this massively overbought araea on all 3 CCI's so a reversal was looking imminent at any moment. Thats what I mean by watching out for overbought areas as thats where the trends you are after will start as in your example above. The 1 hour was very overbought in a strong daily down trend so primed for a sell on your 5 min chart.

This is how I see it, price never moves in a straight line it always moves in waves and will retrace at least 70% of any previous strong move. Its caused by traders having to sell to bank their profits so any big move like this has to go the other way, its just a method of identifying a high probability trade or trend is about to set up.

The downtrend you show here occurred after a very strong move up first causing the 1 hr CCI to go massively overbought as per my chart below. Even better as it was against the daily trend.

So yes we are all after strong long trends but its my belief to catch a move one way we have to watch out for strong moves one way to reverse as they will generally go at least 70% of the previous move, even better if they are strong moves against the higher timeframe trend as you might then look to hold some of your early entries with the longer term trend. Just remember if you're holding a position that the move you're holding will also come back 70% as a minimium!!!

Hope that helps............

Hi navk

For now I wouldn't worry at all about OB/OS on a 1/5 min chart with 15 min settings. There are perfectly valid continuation trades even once cci +200 or -200 breached and falls off.

When moves do fail to push on just wait for the system signals in the opposite direction. Its not rocket science and doesn't need further complication.

GA, GC, GU buy opportunities could arise during NY session.

Hi navk

Could you post a chart explaining your thoughts please???

Hi Clive,

The template has a dash board which says which pairs are trending and how many pips.

I would like to change the colour of pairs for easy visibility.

Can you provide me the source file for editing?

Thanks.

I said in NY session, GC, GU, GA will reverse.

All happened , GA was choppy though.

Charts are attached.

Are you referring to the TTindy ??? if so here it is....

Thanks a lot Clive.

I have noticed it shows trending pairs ( long ) only when CCI 168 and CCI 14 are green and above zero in 5 min chart.

Similarly it shows trending pairs ( short ) only when CCI 168 and CCI 14 are Red and below zero in 5 min chart.


Nice indi.

Yes thats right. The theory is very simple, when you have a strong trending pair then the momentum indicators are 70% accurate , check any trade that you would have liked to have traded and you will see how well the CCI signals work. Look at the chart below, look how many CCI signals would have worked?? The secret is the strong trend.

But how do we know somethings trending strongly? Well look at the 100lwma it is sloping down very strongly, the gradient of the slope is quite steep. Well thats what the TT indy measures the slope of the 100lwma (you can set it for whatever MA you want). Bottom line is if we monitor the 100lwma 's steepness then it will indicate a strong trend is in place. This coincides with the 210 CCI because that also signifies a strong trend too. A pair trading over a +/-100 level signifies a strong trend.

So the theory is only trade pairs in the Top 8 Trenders in fact you could limit that to the top 3 or 4, that way you have a good chance your momentum indicators will signal correctly. Notice I said a "good chance" nothing is 100% so you will still have losers but hopefully not as many as winners and hopefully if we trade in the direction of the strongest moving higher timeframe momentum, your winners will be bigger than your losers.

I'm working on qualifying my 15 min CCI turns instead of just taking any old signal , I'm looking to only buy DB's or HL and only sell DT's and LH's. Basically only strong trending 15 min pairs.

All work in progress but I'm getting there..I think??

Thats the theory but of course the practice is much harder, my nemesis is personal discipline and a bit of trading psychology thrown in to boot.

Let me know how you get on.....

Thanks for posting your very interesting ideas , I will look forward to reading more .

Hi, I presented miself here on the first days of this month Im from Chile and I starting use your sistem from today. Readed all thread and put in the setup on my demo account. I took a trade this afternoon (-4 GTM) London Close and NY was almost finished, and I take 5 pips. My gold here is to get 10 or 15 pips a day and take the day off (jeje). I hope that with your advises can mastering the sistem and be part of this room. I have this image with the trade between red vertical lines. I know is not looks an entry by the sistem, but at that moment I have 3 CCI´S, 14, 42 and 168, and 14 and 42 are red. But doing a visual backtest before read Clive´s advising to Navk, Im traying with CCI 14 and 168 (or 5M and 1H). I think is more clean to the entries (I will work in 5M). I salute to you and hope can be part of this journey. Carlos.

Hi Triquete

Welcome aboard I have not been very active here of late but will be back with a vengence next week for sure.

First observation I would make is to only trade the right time of day when a new market just opens and new money is coming to the table, that to me is the key when trading lower timeframes like the 1 and 5 min charts, just trade when the money is coming to the table. Suggested times are a couple of hrs before to about 4 afterwards max.

If you want to trade 5 min then heres what I would suggest 14 and 168 is good as the 168 is the 14 cci on an hourly chart so you are trading with the hourly momentum, thats good. The idea is to take 5 min cci signals in the direction of the 1 hour momentum. Its best to take the 5 min signals just after the 1 hour CCI crosses the zero line. I would take the first two 5 min CCI signals only but as you are only after 10 to 15 pips per day then just take the first one as long as it sets up correctly, as this will be your best bet.

You will notice that the 168 CCI zero cross is very close to the 100lwma colour change so you could simplify it by waiting for a 100lwma colour change then take next 5 min CCI signal in same direction.

I see you are only after 10 to 15 pips a day which is very wise. In that case only take the best setups there will be at least a couple per session. Something you might like to consider going forward is to just hold until 100 lwma changes colour again as will generally give you bigger winners. The ideal method might be to take 2 entries on a good setup close one for your 10 to 15 pip target and move the other to BE and hold until 100lwma close out, that way you will have both ways working for you.

The secret of successful trader is to have the discipline to just wait for your ideal setup then take it. Something I'm not too good at and where I am concentrating my efforts by training myself on strategy tester, whenever I can.

I have attached a "Perfect 5 min Trade" for you below, so easy to see with hindsight but its always good to look at examples so we can program our minds for what we are looking for going forward. Notice how the 100lwma changes colour after a fairly strong move down, look for this as your first filter before even looking for a buy trade. I have shown the first entry after the 100 lwma changes colour but if you're cautious then wait for the 1 hr CCI (168) to cross zero before taking any entries. Look to take first two signals only or one if you're only looking for 10 to 15 pips, make sure its a HL cci signal(higher or level with last CCI signal). It should go oversold eg over -100 level to qualify and even better if at a key level. A key level is previous resistance or BRN like the 171.00 level here.

If you look at the 3rd entry arrow that is an almost perfect entry as break and retest of the 171.00 level which is also previous resistance. Just a clue here about taking the best signals only, always look for the last LH in the down trend to be used as support in your new uptrend, or the first HH in your new uptrend. They are both awesome entry signals!!!! (again perfect examples here)

Lastly I might suggest taking 2 entries when the setup so well and close the first for your 10 to 15 pip target and hold the 2nd until 100lwma changes colour again as in this example for 90 pips. The secret to being a succesful trader is bigger winners than your losers and this is one way of doing that.

We should really always look to take whatever the market gives us rather than a pre-determined mandatory target. Something that I am working on but thats for another day. For the time being maybe do both? Take your pre-determined target on 1 trade, move the other to BE and let it run until 100lwma changes colour, especially as its a demo account.



Hope that helps and I will be around next week if you need any help...

All the best Clive

This looks great stuff , tremendous effort , Thanks so much , I only just found your thread and not quite sure yet on everything about your method but it looks so promising -- now I have to study it fully .

This trade EURUSD mark between red vertical lines was by book for +16 pips, BUT did´t take it because Daily Pivot was so close (about 4 or 5 pips).


And USCAD was good to take that entry, about 10 or 11 pips before to reach Daily Pivot.

Is just to waiting for signal to take a good entry and have the skills to read the PA ( HH, LH) to take it.
Hope this analisis don´t be wrong, and have the CCI 14 and 168 in the screen is good so far.