Hi Scarylarry, Great job! I have been using CCI for about 2 years now. I also do not use original system, I use it on constant volume bars and utilize the price as well. The clarity it give is great. It smothes the price action and this helps me to make decisions faster. Though I only trade one market at a time. Regards, redduke
Actually the problem with CCI is not that it's too lagging, just the opposite - it's very quick and often shows divergences and TL breaks BEFORE price actually does the same, but there is a price paid for it: sometimes you get stopped out simply because you entered too early and price continues to move where it did before reversal signal for some more time. Same with exits: many experienced CCI users prefer not to use CCI for exits, cause it signals too early. They enter based on CCI signals, but exit watching price action or statistical target.
Quote from CFerret: LOL, you tested very discretional system mechanically? [/B No test. these results are the pure indicator used against live data. Quote from CFerret: The real question is, what professional daytrader would even consider using a rank amateur tool like "freecharts" in the first place? I fail to see your point. I use the daily OHLC for historical records, and it is rarely off. The site is owned by barcharts.com, which is widely followed. The fact that 1-2 years of results of CCI did not work has no relationship with the data. Funny. Everytime TA fails to prove itself, people always love to pick apart meaningless facts, as if that is the reason an indicator failed.
Perhaps you could comment on the charts Larry posted on p. 40, regarding how they are showing a trend change ahead of the actual move in price. I just don't see it. Is it the addition of the black circles around the red/green dots on the lower indicator? Maybe you could also comment on what aspect of the market's movement Woodies is showing ahead the curve of watching price. Is it something like a Stochastic overbought/oversold indication? One sad thing I would note, Woodies CCI is not created equal on different platforms. For instance, Woodies on Ninja Trader, versus Sierra Charts, versus QuoteTracker and finally versus what Larry has shown.
The question is HOW given indicator was "used" (if you don't like the word "tested") by you against live data? That is what I pointed to. If indicator is "used" in a mechanical way (say crossing 0 or -+100 etc.) it is one story and use of it to see patterns, some of which may be profitable with enough screen time and experience is completely another... How did you use it? Looked through every ZLR, Vegas, Ghost etc. pattern on all markets you stated and through all time periods you stated? Seriously doubt it... And even if yes, what were your criteria of entry, exit and trade management, in other words main components of profitable trading method? That is not my words at all. So better ask austinp.
Unfotrunately I cannot see on Larry's charts examples of what I said, but will try to pick some of my charts where such a case can be seen. It mostly happens with TLB's on CCI happening before actual TLB in price and CCI regular divergences, when CCI hooks while price still goes down and allows to pick almost an exact bottom (assuming a long). Also I agree with you that unfortutanelly calculation of WCCI is very different across the different platforms, that is why I got rid of most stuff specific to Woodie and have only "classic" CCI on my charts.
Bytehoven: Here is an example of CCI showing a good shape regular divergence, while price bar closes up and this setup allows to pick almost an exact top with a very nice risk/reward. Chart is 5min NQ, Globex session. Cheers Janis
Funny, but Woodie DOES admit it. Literally in the first lines of "official" document describing Woodies system there are words that "successful trading is much less than 20% trading system and more than 80% mental control". Also seen this statement several times on Woodies forum.
Can woodies CCI be automated.... If your trading system rules are not defined enough to be automated....put on your trading helmet, it is going to be a tough long trade day. :eek:
Caught an example of early CCI TLB this morning on HSI. BTW, there are two profitable CCI setups as well on this chart one before and one after the given TLB.