Hello, i recently been exposed to the world of the cci indicator in day trading. i still have many questions about. Any help i can get, i would really appriciate. I know there are multiple time frames, which is your main one? meaning, which time frame do you use to see how much profit potential you have? also, what is the average amount of time you hold a position? And, if i understand this correctly, you only go into a position on the 0 line crosses and the 0 line bounces? and those are the only times you enter in a position? there are no other triggers you use by looking at the chart or the averages? How consistent are you with this system? Where and how do you place your stop losses? when the averages cross, or are about to cross, and the cci has went above the 0 line already, you would enter, is that correct? I like to go with the trend, so thats why i am asking that. and does that work most of the time? you use MACD on the one minute chart, do you use other indicators on other time frames? rsi, stochastics? and how do the triggers on other time frames work in accordance with cci? Thanks a lot for taking the time to answer all of this, i know its a lot but i just have so many questions.
I use a 5 period CCI on the daily chart sort of as a fail safe check. I won't go short until the CCI has gone over +100, long -100. I do not place trades based on CCI alone. Profit potential comes off of daily, 180 and 60 minute charts. Trades are entered at support and resistance. The CCI, as in the case of any indicator (especially oscillators) should be used as supporting evidence, not the reason to enter. Hope this helps.
Oops, should have mentioned my time frames. I"m not a traditional scalper, nor am I a swing trader. My trades generally last from a few hours to overnight. Much less when losing. I don't trade everyday, just when an overwhelmingly high odds setup occurs, which is usually a couple of times a week. This allows me to grab roughly 10 - 15 ES points per weeks with virtually no (1 to 2 points) risk.
woodie has a room on paltalk.. lots of interesting CCI stuff.. also i think some of the people in the ensign room are using it too.. they use it more to look for divergences etc though.. -qwik
Hi Donald, I saw a similar question by you over at TalkStox. Heres my recommendation. Its going to cause you to do some actual work...but the pay-off at the end will be unmeasurable. There are a lot of ways traders use the CCI successfully. Many of these methods are different from trader to trader. It's best for you to print out charts of each intraday going back a minimum of 3 to 6 months. Why print instead of just viewing the charts on the computer? Its difficult scrolling on the computer when you want to...for example...compare something that occurred on January 3rd Friday 2003 to something on March 18th Tuesday 2003...and then compare the same occurrence that repeated on 12 other different trading days. Therefore...print out each intraday going back as far as you can... then start studying the CCI. However, first learn some basics about what the indicator was designed for. Then start from there. Your trade methodology and what you find that is repetitive and exploitable will go hand and hand because...its you that found it. However, for someone to specifically tell you to enter here...exit there...put initial stop here...put initial stop there...take profits here...take more profits there... will be difficult to prescribe to you because they most likely have a different trade methodology that may not fit well with your trade methodology. For example...what if they don't use fixed stops and you do. What if they use volume as a filter and you prefer exponential moving averages as a filter. What if their profit-targets is based on ma crossover and yours is based on ma s/r levels. CCI is an excellent indicator and I don't recommend you use it all by itself...the same with any other indicator. Make sure your using a good software that allows different types of CCI settings that's different than the default setting. CCI Tip: Start studying, reviewing your printed charts for divergence and what the CCI was doing a trend peaks...up or down...that's just the basics. Once again...start printing...start discovering...then start trading with a very small size so you can fine tune what you've discovered based on your trade methodology and not on someone's elese trade methodology. Simply...a trader can only share with you strategies or a few tips... but they can't teach you how to trade (trade methodology). Good luck...once again...CCI is an excellent indicator... enjoy the profits. P.S. Woodies realtime chat room has moved from the bandwidth hogging PalTalk to Hotcomm. I got a screenshot from a sales guy at Hotcomm about Woodies room...reason why I know it moved over there. In fact...I myself am thinking about moving my private chat room over there also. NihabaAshi
Here's a screenshot of Woodies CCI Realtime chat room that I mentioned before. If your serious about the CCI...his room may be a rich source of info...info being discussed and used in realtime... while your comparing notes to all your printed out charts after the market closes. NihabaAshi
Woodie is a good guy and all and has some 25 years of experience in trading. That said, I'm not a fan of his method .. , tries to find tops and bottoms too much and the indicator can fake you out pretty badly.
Much of the Woodie's CCI info and charts have been posted at http://www.talkstox.com/forum/forumdisplay.php?forumid=13. In addition, plenty of CCI daytraders post intraday charts to http://www.dacharts.com.