Multiple timeframe CCI

Hi traders,


I am starting a journal with the CCI (10) indicator. Buy signal above the 50 level and sell signal below the -50 level. Before entering a buy trade, confirm that the overbought zone is also reached in the next higher timeframe. Before entering a sell trade, verify that the oversold zone is also reached in the next higher timeframe. If not, no trade. Stop loss on the previous swing high/low. Also, close the trade when the opposite overbought/oversold zone is reached.


I am using the CCI_CustomCandles indicator wich shows green candles in overbought territory and red candles in the oversold zone. I am trading the 4hr timeframe and currency pairs with less than 10 pip spread. Here is a pic of my monitoring setup:



http://i59.tinypic.com/9vjukl.jpg


Here is my first trade with the USDSGD pair. Vertical line shows the time of entry and confirmation of overbought zone in the two TF.


http://i57.tinypic.com/2wcnnea.jpg


I picked up the idea from Robert Haddad, a French speaking trader. He uses a stop and reverse strategy with the RSI (5) and its 60 (buy)/40 (sell) levels. CCI (10) with 50 (buy)/-50 (sell) levels is a close approximation of his indicator. Here is a link describing his technique. It's in French, but use your favorite translator for a better understanding. The images are pretty explicit.


Instead of using a stop and reverse technique, I prefer to enter trades with a higher TF confirmation. I will try to update my trades as much as I can.


Chamane

Securing the trade by moving stop loss above price entry + spread + 5 pips.


http://i62.tinypic.com/2yjpibq.jpg


No other entry signal appearing so far.

Buy entry for USDJPY at 118.395, stop loss at 117.20.


http://i61.tinypic.com/28ujiqg.jpg

Closing USDSGD at 1.34185 for a 41 pip gain.


http://i57.tinypic.com/qnws8x.jpg

Adding two more entries:


AUDCAD Buy 0.98825 SL 0.97740
USDSGD Buy 1.34485 SL 1.34040




USDJPY still alive.


Chamane

Closing USDSGD for a 16 pip loss. In that particular case, I realized that the CCI_CustomCandles had given me a buy signal whereas the standard CCI had not. I will pay more attention for next entries that the standard CCI is the one I should rely on.

Closing USDJPY with a 63 pip loss. That pair is caught in some kind of flag pattern on both 4hr and daily TF.

http://i60.tinypic.com/118m8th.jpg

I am sticking to my rules. The strategy is aiming big moves. Other entries:

CADJPY Sell 94.377 SL 95.500
NZDJPY Sell 87.415 SL 88.300

Chamane

Closing AUDCAD with a 47 pip loss. Tough start this week.

Another entry:
AUDJPY Sell 93.419 SL 93.453

Chamane

Closing CADJY a los with a loss of 69 pips.

Buying gold at 1293.40 SL 1271.00.

Bad first week. Many losses, I realized that I should rely on the default CCI indicator rather than the CCI_CustomCandles. I added a CCI 60 on the 4hr TF wich gives me a global picture of my strategy on a single timeframe. I missed the AUD and NZD trades. I didn't like the big short candle because I know sometimes price reverses right after the move. If I had taken all the opportunities, it would have comensated for my losses. I have two good trades still opened (CADJPY and USDCAD) totalizing over 425 pips altogether. I will keep posting my results next week.

I have decided to modify my strategy parameters. I am using CCI 50/250 instead of 10/60. It' is following the same principles, so buying when both CCI's over 50 and selling when both under -50. I find it easier to follow. Still trading 4hr TF.

I entered EURGBP. EURUSD and USDSGD are showing signs for trade enters. I'll wait and see next Monday.

http://i57.tinypic.com/11tscxd.jpg