Trading is as simple as ABCD

Hello,
Nice thread you have here, I started following last week and I'm still catching up.
Congrats on everyone that is contributing.

In what TF are you using your master template regarding the TTIndy in M5 or M1?
This will open the strongests pair according to the TF that the master is on, so if it is in M5 it will open all strongest in M5, or can we have the master in M5 and open all default in M1?
BR

I am taking the UK 8.00 until 9.00 am Bar which should be on your chart High 186.709 Low 186.158 your Pivots seem the same as mine,(will talk about them later) the simple idea is Clive always talks about the London Boys, well my view is that they have a battle during 8 - 9 so I want to see who wins and go with them taking 9.00am rightly or wrongly as the end of the battle so I go with who I think as won (Buyers or Sellers) now I only trade in the direction of the breakout hoping all the time that they will keep making higher highs or lower lows all the time expanding the daily range now if they breakout the box one way then reverse and breakout the box the other way I check what the Daily range is and if I think their is enough left go with it
So I am a seller below the box and a buyer above the box my stops are the opposite side of the box, will talk about money- management later
I just stick mostly to the Gbp/Usd for my trading
Thank you very much for your interest and screenshot

Yes I agree with you and I would have no problem with yours but its horses for courses and their being no Holy Grail I have decided to go with the 8 - 9 on the Gbp/Usd other pairs might need a different time for the box, I use Pivots and Range for targets just used 20 pips as a minium

Hi

Whichever timeframe you have on TF1 will be the master so if set to 5 min and 35lwma it will measure the slope of the 35lwma on the 5 min chart and rank them accordingly so you should have the top 8 5 minute trending pairs to trade.

However you can make those charts 1 minute if you wish, thats what I do...and then just trade every CCI signal in the direction of the 5 min trend....

Good luck..

I started using your template on 5m with csm.
really nice MA combination..
great work...
wish you green pips Mr.Clive!
(and to all the contributors here..)

I did respond to you Dave. I asked about the time zone and you replied back. It is in the thread. I am not a frequent poster and am not putting up charts, but that does not mean I don't pay attention.

I have no problem with that, I am a easy going guy really enjoy this thread and am a big fan of Clive's that does not mean I have to agree with everything he says and does, I just want to be a small part of the thread never wanting to upset anyone especially Clive, feel I have some simple ideas that might help in some small way or even get debated in the correct manner without all the back stabbing that as suddenly appeared.
Much that we all want to find the Holy Grail to trading their is not one and that's why we all must learn to listen to each other and be prepared to change our views on things from time to time, after all their are some very good guys on this thread with great ideas
The biggest problem we all have is different views about risk & reward and this or any thread will not solve that, to me this thread seems to be all about finding low risk entries, what you do after that is each guys own choice

THks!
I will start again next week, believe that I need to improve the timing of my entries.

Some interesting charts this afternoon but a bit tricky earlier on...

Got some refinements to work on going forward , still the same basic system, find a strong 5 min trend and enter on the CCI signals back with the trends just some minor tinkering with CCI settings , like do we use 8, 14 or 20 or maybe change for certain pairs and such like, will post over the weekend again but a good week overall...

Heres a couple of charts from this afternoon....







EUR weakness most of the afternoon as MR V. says hence the EUR pairs in top trenders all afternoon...

Clive - hi m8.

Careful cos it sounds like you are gonna be guilty of curve fitting.

[quote=clivepackham;8462820].... just some minor tinkering with CCI settings , like do we use 8, 14 or 20 or maybe change for certain pairs and such like... [quote]

Personally, I am a fan of a CCI 10 with 125 and -125 as levels, especially with markets as active as they are now. If things die down again, the levels may change to 100 and -100, but never thinner than that. If the market is that thin, why trade anyways. Just enjoy it as a day off. Those are my thoughts.

Hi Mike

I know what your saying but those charts were on my TTindy top 4 all afternoon so I'm not curve fitting I'm just "TTindy" fitting...

There was EUR weakness all afternoon just pick the strongest against the weakest so not really curve fitting just simple observation....

Theres a few filters that we can apply before trading that give us a chance for instance trading the strongest trenders;trading during the London/ new York session and trading the strongest/weakest combination are the first three then just enter when the CCI is overbought or sold depending on your direction .

Hence the three charts above qualify on all four accounts...

I rest my case your honour...

Just want to talk about entries for a bit as a safe entry is paramount to a successful trading strategy...

First of all let me share my philosophy about trading as it explains the reasons behind my entry method. I believe price can only go up or down so our job is to find a chart that is plainly going one way then look for the ideal place to join that trend. Now bear in mind it can only go up or down then all we have to do is find a way of identifying a turn back with the trend...

Seems simple enough doesn't it?? Well if you look at any chart with a CCI indicator on it you will see that the vast majority of turns are picked out perfectly by the CCI indy. Just have a look at the chart below and you will see time after time that the best place to join the downtrend is when the CCI is overbought, green spikes up over the 100 level. So that surely has got to be our goal to only enter the market at these overbought places. If we're buying of course the complete opposite applies and we're looking to buy when the CCI is oversold below the -100 level...

So here is your golden rule of entering sell only overbought CCIs buy only oversold CCIs . This is our sell wave tops in a downtrend buy wave bottoms in an uptrend and NEVER DO THE OPPOSITE......NEVER SELL OVERSOLD MARKETS AND NEVER BUY OVERBOUGHT MARKETS....

Golden rule never to be broken as it will cost you dearly... How do I know that?? Because I do it all the time when the markets moving quickly my way, I get carried away and I jump on too late when the CCI is completely in the wrong place and I'm in draw down as fast as you like almost immediately, just don't do it.....

Lets have a look at a strong trending chart from today the EURAUD, when trending down then the best place to enter for a quick bigger winner is when the CCI is overbought. This is the top of the wave so allows us a fairly small stop around 10 pips and a high probability of success. Make it a golden rule to only enter the market at either overbought CCI signals or if buying oversold CCI signals..

The reason this works is because all the pressure is down so when the CCI goes overbought its like pulling a bow back you're literally pulling back against the trend and just like the bow when it comes back it comes back with a bang giving you a quick safe small risk entry, allowing you to get to BE very quickly so removing your risk from the table...

Thats why I trade 1 minute charts I do not like drawdown at any time not even for a couple of minutes I just want my risk off the table asap...

My TTindy is set to measure the slope of the 35 LWMA so as you can see it was sloping down nicely..

This is a major requisite of this safe entry system, you must be trading a strong trending pair...

The only time I deviate from this is when I'm trying to get in very early on the move when I will look for the 175 Lwma to change direction then I'm looking for the first couple of CCI signals after the turn. I only tend to do this after it has driven itself one way very strongly then turns over caused by rapid banking from the earlier move so it reverses with great force and trends strongly immediately, be careful not to get caught up in a pair thats just drifting along with no real move either way...

Now I have tried different CCI signals on different pairs and the conclusion that I've come to is to use an 8 setting because we are trading strong trenders and want something fairly sensitive that will go overbought/sold against a strong trend but just be aware that you might get a few false signals so its essential to keep your losses as small as possible so 10 pips max.... If it moves the CCI against you then just get out....cut the trade quickly as it hasn't finished pulling back or even worst its a full blown reversal and could cost you a fortune in pips if you let it run against you. Just GTFO and wait for the next one, these entries should go your way almost immediately and not come back at you...

As you can see in this chart when they work they go back with the tend quickly within a few minutes and leave your entry behind. If you're still in it after 3 minutes and its not flown away close it out as close to BE or better as you can .. It will give you another setup a few minutes later so don't worry about missing out on your trade these are one minute charts the next setup is just a few minutes away...

You can see from the chart there are plenty of opportunities so if you're not sure let it go and take the next one...

If you had taken everyone of these trades and lets assume you banked only half of every run then you would of banked about 100 pips so plenty of pips to go round...Don't worry about missing the odd entry.

Heres the chart I have marked every CCI overbought signal with the corresponding entry candle as you can see theres a high success rate with just one loser amongst the 8 entries marked which in my book goes down as an edge... Now even if you agree with my friend Mike and consider this a hand picked chart its still a pretty good example of how this entry system works and it was on the TTindy so no excuse for not at least looking at it...



Now I'm going to look a bit closer at some of these entries and talk through how I enter the market, well actually how I "should" enter the market...



I've numbered the entries 1 to 5 from left to right for identification purposes.

 

1. I'm going to use this one to explain how I enter, firstly the CCI has gone overbought so over the 100 level. Then I'm looking for the CCI to have a shorter green bar than the previous one, this tells me the up momentum is reducing so the move up is slowing down which of course is the first sign that price might reverse.
   Now you can see there were a couple before our signal one, why? because we need a price candle the same colour as the trend direction so a red candle. This is our signal candle below which we put our sell stop pending order 2 pips below its low.
   This signal candle needs to be fairly small no bigger than 10 pips to get our stop behind it and the best ones have a flat bottom with no or little downward spike. A downward spike suggests the level was rejected so we don't really want to be entering into a rejection area. This candle is actually a doji which is acceptable as it denotes change and thats what we're looking for.
   However the best candles have flat bottoms or if you're buying flat tops.
   Now as you can see our sell stop was hit by the large red candle two candles away from our signal candle. I tend to leave the pending orders in place unless I get a longer CCI bar which shows that the upward momentum has returned and the pullback hasn't finished yet so then I either drag it out of the way or wait for another signal candle and drag it up below it.
   I normally go to BE within a minute or two as if this is going to work it will just go and not come back. have a look at all these entries on here and you will see a good entry doesn't hang around too long so if it doesn't go within 3 to 4 minutes just GTFO quickly for as little damage as possible. I often just drag my stop to BE even if its just 1 pip up to clear it out but just in case it goes...
   This particular run goes about 60 pips so a nice start to the move, the best entries are close to the initial turn down when the 175 LwMA went red. Try to get on the first couple of CCI signals after it turns down..
   The TTindy doesn't always get you into these earlier entries so I use an alert to let me know whenever a 175 changes colour..
2. Ok entry number two our loser amongst the bunch. Now there is a couple of reasons why I might not take this one and the first reason is that it has already moved 60 pips from the first move it really needs a substantial pullback before re-entering , plus its quite near to its last low and finally the signal candle is a pin bar up. Thats telling me price doesn't want to go down even though the CCI has signaled.
   Also we've just taken nearly 60 pips from previous entry so make yourself a cup of tea and don't be in a mad rush to give it straight back.
   However me being me and terrified I might miss a move lets say I took that entry. THe signal candle is 5 pips long so with 2 pips room and 2 pips below then I'm talking a 10 pip stop max and thats fine, if its any bigger then its a no trade anyway. So worst case I gave back 10 of my 60 pips won...
3. Entry number 3. Now this is an interesting one and again not so sure I would have taken this as its a bit strange but lets talk it through. Look how the CCI is signaling really early here as price is still going up and the first signal candle is a small red doji so quite aceptable but our pending order doesn't get hit so then theres another red candle and this time its an upward facing pinbar again not my favourite but again the pending order doesn't get hit so then we have our next red bar and yes the CCI is still signaling with smaller green bars but that bar is 15 pips long and far too big for our 10 pip stop to go behind so a no trade.
   I want to talk here quickly about these long bars as they can mislead you into hitting a quick entry, however don't be tempted as it will 9 times out of 10 pullback from its low about 50% before going if it is going to go, so let it go and wait for next setup.
   Now we're in a funny place our CCI has signaled 4 times without a hit and in fact its bars are still getting smaller and now going red so I might be tempted to let it go and wait for the CCI to pullback up over 100 level to start over again with entry 4 but lets assume I'm still suffering from the fear of missing out on a handful of pips and decide to take the next signal bar. Now firstly notice that this bars corresponding CCI bar is a signal as its gone longer red so its moving the right way and the candle is a lovely flat bottom 5 pip candle so an ideal signal candle so I take it and no harm done as it moves about 15 pips so BE at worst and maybe 5 or 6 pips.
   But heres the point I want to make about that last entry, compare it to the next one, entry 4, which runs for 20 plus pips, entry 3 gave us less pips and it was risky so we should let it go as the next setup is just 12 minutes away, so whats the point of that risky shall I? Shall n't I entry???? Just let em go, if in doubt stay out....
4. OK entry number 4 please..This is almost a perfect entry , but first let me quickly mention a couple of red candles before it and why we don't take them. No CCI overbought level so just let them go and the reason we have our level 100 as overbought is to ensure we are only trading the deeper pullbacks that get us away from the last low so we have room to manoeuvre to BE before we hit the old low..
   Firstly the CCI signals and the signal acandle is red and only 5 pips long with our lovely flat bottom so a perfect signal candle. Our PO gets hit next candle and we get a nice 20 pip run out of it and hopefully 10 to 15 pips, see how it faltered at the last low?? Thats very typical so I'm always ready to close as it approaches its last low.
5. Lastly our entry number 5. Now everything is great about this entry, great CCI pullback , nice signal, lovely flat bottomed candle BUT its right on the last low with no chance of getting to BE before you hit it. Its your choice, heres what I like about it, its the third lower high in a row which usually happens when we are about to break the last low, because the sellers are coming down harder and harder and earlier each drive so seem pretty determined to get this through plus the buyers runs up are failing lower each time so if it is going through it could be now.
   However if you decided to take this on, if you see any serious support at the last low just GTFO quickly don't take chances or get to BE very quickly just in case the buyers are waiting in ambush for you.
   But it worked this time but maybe not the next.......
   What I will say about that last trade is it was more like a breakout trade breaking that previous level and the next two entries after that one used that level for two more entries which often happens after a break of a level like that..Check the chart above and you're see what I mean..

Well thats about it from me on entries, used well in strong trends its an awesome low risk entry method which seldom fails me as long as I obey the rules and don't rush in, but when it does fail its just 10 pips gone so no big deal...

[quote=capstone;8462981][quote=clivepackham;8462820].... just some minor tinkering with CCI settings , like do we use 8, 14 or 20 or maybe change for certain pairs and such like...
Hi Cappers

Yep I'm with you not much difference between 8 and 10 I guess as theres not much between 14 and 20 on 1 minute charts they are very similar but like you say 8 or 10 and the levels between 100 to 150 and you've got a system that works thats for sure.

Identifies tops and bottoms of waves perfectly...

Nice to have you around again...

Hey Old Timer, how you doing???

Yep you've hit the nail on the head all about low risk entries and that gave me the idea to post above about how I'm using the CCI, just love that little indy,,,

Get in tight and get the risk off the table within 5 minutes thats my goal and very often within the same one minute candle, can't be a much safer way to trade can there???

Might help Dave if you posted a chart or two as a picture paints a thousand words, if it helps we can skype up sometime and I'll show you how easy it is to post charts, takes me about 30 seconds from start to finish nowadays, so if I can help just skype me...

I work on the same theory as you my TTindy just tells me which pairs moved the most over the last hour so I look around 9 o clock like yourself and see whats moving then in I go like my EURCAD trade this morning, so we're on the same lines Dave just a different way of doing it...

Theres more than one way to skin a cat they say, God knows why anyone would want to skin a cat though????

Hi Kwinwls

We sort of already have one as the 175 has an alert on it when it changes colour and if you look at a chart when the price crosses it so the 35 lwma crosses it, as that happens the 175 changes colour and so alerts me to the crossover...



Clever stuff ehh???

So thanks for the suggestion but I think we've got it covered try it and see what you think??

Clive,
I understand the idea of using TTindy, but tell me please, if it's possible to limit the amount of pairs to a few i need? The problem for me is that my broker uses large spreads for pairs like GPAUD (15 pips), which is too big in my opinion to use your method... So I decided to focus on a few pairs with reasonable spreads and now I do not need to see all avaliable pairs, even if they're strong trenders. I just wait until my chosen pairs are in the right setup.
I'll be grateful for your help:-)

Hi Piofx

I get asked this quite a lot but it works by comparing the slopes on all pairs and the ranking them so it sort of defeats the object to take some off. However remember what its doing its measuring the slope of the 175 lwma or the 35lwma from the 5 minute chart so just look at the charts you like to trade and you can see 175lwm sloping nicely its trending strongly so look to trade that pair.

You could just watch your favourite pairs until they start trending, 175lwma starting to slope up or down or another way is to put the slope change alert on your 175lwma and when you get an alert check out the chart for the CCI pullbacks...

Just a couple of ways to achieve what you're after..

Hi Clive. I am liking your Back To Basics approach. Thanks for making great posts like this one: I am glad you are making good pips. You deserve it.

Max

Aye Aye Skipper, me too...

The reason I posted that detailed post about my entry technique with 5 examples is because I feel its the most important part of my strategy. We know price can only go up or down so if we can detect a reversal of price direction then we can enter at will in either direction quite safely risking only 10 pips...

Now I've talked a lot about trading with the trend and its very important to do that to give you bigger winners than your 10 pip losers so we should only sell below our 5 min 35 lwma or buy above it..

However I've been looking at some charts this weekend and its painfully obvious that there are key levels on our charts where we should be looking to enter using this CCI entry system..

Let me show you a couple of other times other than a strong trending pair where we should be looking for our CCI to turnover and get us in for low risk - high return trades..

I'm talking about Key Levels from higher timeframes where we can expect a reaction on a 1 minute chart areas like yesterdays high and low or close. Or 25 levels are very good to buy or sell from, in fact I'd say be careful selling or buying right into a 25 level as you can expect a reaction.

Look at this GBPAUD chart when price comes up to a very strong level 2.1550 from earlier, both times as price moves towards the level and the CCI goes overbought look for your CCI sell signal to take you back down. Both times in this example you would of got 60 pips from each resulting move..



Just mark your levels out and watch the CCI as price approaches, can you see these CCI signaled as price was still going up so leading you into the trade?? Look at the second entry in particular , see how it signals about 4 minutes before we get our first red signal candle?? Thats the power of the CCI its a leading indicator turning down before price does....

And just for good measure 2 hours later price comes back up to our Key Level 2.1550 and gives us two more 60 pip trades...



I'm always looking for a level to expect a good CCI signal from, there will be a lot of CCI signals so try to be a bit picky and look for a good level for your CCI to react to...Break and retest of key levels are awesome entries when confirmed with a CCI signal, for instance break and retest of 25 levels, break and retests of the 35 lwma 1 min(35lwma) or 5 min(175 lwma), break and retests of support and resistance in particular old highs and lows in the trend...

Heres a couple of more examples of key levels to look for our CCI signals , this time the 5 minute 35LWMA (175 on 1 min) , whenever price is around this 35 lWMA look for CCI signals either as break and retests if it breaks through or bounces like these back with the 5 minute trend, 50 plus pips on the first and 80 on the second. Another Key level is yesterdays low as in this GBPJPY chart but also keep an eye out for yesterdays high and close levels.



But lets not forget the best way to trade is with the trend, but we should still look for key levels to trade our CCI signals so heres another GBPAUD chart with some examples of key levels in a strong trend...



Look again how the CCI signals before our first green signal candle back with the trend, its leading you into these trades...

So there you have it , look for CCI signals at key levels for low level risk entries with high probability good RR returns...