I agree that can happen, and all I could ever take was one day in Woddie's room several years ago....LOL!
ssternlight, have to agree that when it comes to CCI, like every other indicator, there are few who can make it work. I took a looked at Woodies stuff for a time and wasn't exactly converted. However as pointed out earlier, Goinglite is an excellent CCI trader - but it's not Woodies style. Take a look at Interesting Charts thread and keep and eye on Going's posts. I've known him for some time and he walks the walk with unique CCI trades. But there's another issue, and it is that every tool has reached the market because someone knew how to use it. Now with so many tools available most traders are jack of all and master of none. Then they rubbish the tools. Perhaps in TA everything works is closer to the truth!
i have read somewhere that CCI is the only indicator that uses real time price in it's forumula whereas other indicators are lagging...
Here's a link to the formulation. http://stockcharts.com/education/IndicatorAnalysis/indic_CCI.html Like any indicator it can be calculated tick by tick or at the boundary of a defined bar -- time, volume, etc.. The rest is just another urban myth/sales job.
I like The 14 CCI along with The 50 CCI for Starters. Some good timeframes to start off with are 1min, 3min, 5min, and 13 min charts. I also like a 22/50/9 MACD, Lines only. You can start as low as a 1min chart. If the range is too narrow or choppy, just move up in time frames. I've seen some very fine traders do very well with the CCI. Such as GB007, Woodie, Fitzy, Dr Bob, Paul Rotter, etc. Quote from a Paul Rotter interview: "q: what timeframes are you using on your charts? a: usually 5- - 30-min charts for trendlines and indicators. I prefer p&f charts because they give me a clearer view on patterns (triple tops). for indicators I like the CCI because it also shows the volatility of the markets." http://www.trading-naked.com/paul_rotter.htm In parting, I would like to say : It's not the indicator, it's how you use it that counts. Anything can work if you know how to use it. "Creativity" does mean something I enjoy discussing new ideas. I like seeing "Creativity" at work. What I don't like is indicator bashing, people bashing, etc. For me, in trading, the only thing that's important is "Creativity". I don't want to have my time wasted, hearing anything else. Goinglite
hey goinglite, what do you use in conjunction with the CCI? I know you have mentioned moving averages... I also have noticed that sometimes in regular divergences, some of the nice moves are the ones that the price makes a low but the indicator stays flat ( for going short) How do you draw the divergences? do you draw consecutive tops (immedaite peaks) or do you also draw on other peaks (earlier ones).. does it matter as long as they diverge?
Im not a "divergence" trader. But If I were look at a divergence, it would be the macd lines. Those are my favorite for divergences. For the CCI, I only look for 3 things: 1. For the 50 CCI, I looking for a zero line crossover. 2. For the 14 CCI, Im looking for a nice 45 degree trendline break starting from at least the 133 line. 3. For the 14 CCI, Im looking for a 133 line cross with a 14 CCI trendline break. Some nice confluence could be a 161.8, 261.8, or 423.0 Fib Extension. If you like moving averages, 20 ema, 34 ema, 9ema, and 30 weighted are good. I've posted a few charts under the "Interesting Charts" thread. Study them. But most important, think for yourself. Use your own creativity to mold your own system. If the CCI helps, great. If the CCI doesn't help, then get rid of it. Don't judge, judging will "close" your mind and you will be "stuck in a box". Here's a quote from me that may help: "Don't get "stuck" in a box. Don't let "conventional" wisdom stop you. Take that, which "doesn't" work, and "make" it work. Picking tops and bottoms doesn't work? Make it work. Trading with the trend doesn't work? Make it work. Price Action doesn't work? Make it work. Indicators don't work? Make them work. Not Creative? Get Creative. Laziness is the "enemy" of creativity. Have a "burning desire" to get better. Work hard enough, long enough, and you will "become" creative. There's one "word" that you will face everyday until you become successful. That "word" is called "discouragement". And how you deal with that "word", will determine whether you "win" or "lose"." Goinglite
One last thing, for confluence, I also like the 180 Bollinger with a 10 sma and a 13 sma. I like to see the ma's cross the outer 180 bollinger bands. A nice nuance from the Swing-X Template. A very fine example of "Creativity" at work Goinglite
Hi Golinglite, Great posts! 50CCI you use much like DrBob describes, right? BTW, what markets do you mostly trade with your CCI techniques? I try to not "get stacked in a box" but seem to be cause I feel like clued to ER2, but would like to trade something else as well to diversify and get more trades.
I trade basically just the ES. I made add some European Markets soon. To find how I use the 50 CCI, check out my charts in the "Interesting Charts" thread. Here's a link to Dr.Bob's excellent work on the 50 CCI: http://www.trading-naked.com/cci-trading-the-50cci.htm Hope it helps Goinglite