50-CCI set-ups

After reading danarm/FXPimps thread, it reminded me of the Woodies CCI when I saw the CCI histogram with the grey "nearly change of trend" and yellow "warning - change of trend confirmed" markings.

Woodies I think is CCI-14 and CCI-6 (turbo).

And that reminded me of the more sedate Dr Bobs 50-CCI.

So I though I would dig it out and give it a fresh airing.
(the link is to the trading-naked site, which I regard as a decent filter, in that only the better ideas get put there.)

CCI Trading DrBob’s 50 CCI NQoosTradingNaked

have been browsing Traders Laboratory over weekend.

there are some threads started by "walterw" a while ago. dont think he posts there anymore.
anyway, he also uses CCI as a trigger, almost woodie-like.

but he is(was?) a scalper, but his threads all show him starting off with a simple idea, and evolving the idea through the thread.

One interesting component, is his use of some kind of MA that flatlines when market is choppy.
I think its called "Kaufman" AMA (Adaptive Moving Average) and seems quite good.

anyway, this post just to let you know I found a really good info-rich thread.
(some of his other threads he started arent bad.)

trendie said:

After reading danarm/FXPimps thread, it reminded me of the Woodies CCI when I saw the CCI histogram with the grey "nearly change of trend" and yellow "warning - change of trend confirmed" markings.

Woodies I think is CCI-14 and CCI-6 (turbo).

And that reminded me of the more sedate Dr Bobs 50-CCI.

So I though I would dig it out and give it a fresh airing.
(the link is to the trading-naked site, which I regard as a decent filter, in that only the better ideas get put there.)

CCI Trading DrBob’s 50 CCI NQoosTradingNaked

Click to expand...

Hi...after "browsing" posts on t2w for a while now, came across your post which interested me greatly. It reminded that I to came across Dr Bobs before even knowing about the t2w site. It was of interest to me in the fact that one of the signals I base my trading on is in-fact CCI...and although it does not get set at 50 I use it as a guide entry / exit. It is a most under-rated signal and a valuable asset to my trading..What normally happens is people discover and "dismiss" common indicators after they have exhausted all the settings and can find no common ground for its use in trading. What they should do is think a little "wider" on common indicators and perhaps say "well it does work but only some of the time" therefore structure can be built. This applies to all use of common indicators not just CCI, Many a person has dismissed many useful indicators because it’s "not what the others use" so why should I ?, (rather like your Abraham Maslow quote) This I think is a huge mistake in trading. I use common indicators, very little TA and NO fundamentals. All my indicators either confirm or reject a signal of entry or exit. One of them is CCI and I would be rather lost if it was not available. CCI is an exceptional signal if used in the correct way ! , we all may (or may not) use a combination of “lagging” indicators but it remains that its the settings that count ! traders should be aware that simply dismissing them “because they do not sometimes fit” is a profound mistake traders should never make. The article you have quoted is of use in its entirety, and everyone should be reading its contents very very carefully. Your second post is also relevant to the way I trade in more ways than one, the “kaufman” AMA is of relevance to trading succesfully, or at least as a general “tool” of the trade. My last point before boring any and all to death is that people new to this “trading for a living” concept are far from inventive, do hardly any research into past methods, and do not try to think differently. Even about indicators that have been around a long time . They seem to just pass them by instead of trying to use there full potential. Many thanks for the above posts, I hope it receives a few more comments. or it may well prove some of the points raised in this one !!!! Mechtraderpro

Hi Trendie,

Thanks for posting this. I found the 50CCI to be very interesting and with just a few 'tweaks', very rewarding.

MMBMUSA

trendie said:

After reading danarm/FXPimps thread, it reminded me of the Woodies CCI when I saw the CCI histogram with the grey "nearly change of trend" and yellow "warning - change of trend confirmed" markings.

Woodies I think is CCI-14 and CCI-6 (turbo).

And that reminded me of the more sedate Dr Bobs 50-CCI.

So I though I would dig it out and give it a fresh airing.
(the link is to the trading-naked site, which I regard as a decent filter, in that only the better ideas get put there.)

CCI Trading DrBob’s 50 CCI NQoosTradingNaked

Click to expand...

mmbmusa said:

Hi Trendie,

Thanks for posting this. I found the 50CCI to be very interesting and with just a few 'tweaks', very rewarding.

MMBMUSA

Click to expand...

Now the question all of us are asking is: "What are those tweaks???"

linuxrules said:

Now the question all of us are asking is: "What are those tweaks???"

Click to expand...

Mostly in the mind I would say.

trendie said:

After reading danarm/FXPimps thread, it reminded me of the Woodies CCI when I saw the CCI histogram with the grey "nearly change of trend" and yellow "warning - change of trend confirmed" markings.

Woodies I think is CCI-14 and CCI-6 (turbo).

And that reminded me of the more sedate Dr Bobs 50-CCI.

So I though I would dig it out and give it a fresh airing.
(the link is to the trading-naked site, which I regard as a decent filter, in that only the better ideas get put there.)

CCI Trading DrBob’s 50 CCI NQoosTradingNaked

Click to expand...

I used Dr. Bob's methodology, about 3 years ago, for trading the Dow and Russell. It worked quite well and is far more reliable than Woodie's 14/6 method.

i found that using tick charts, as opposed to n minutes, produced the best results.

From Investopedia
"The one prerequisite to calculating the CCI is determining a time interval, which plays a key role in enhancing the accuracy of the CCI. Since it's trying to predict a cycle using moving averages, the more attuned the moving average amounts (days averaged) are to the cycle, the more accurate the average will be. This is true for most oscillators. So, although most traders use the default setting of 20 as the time interval for the CCI calculation, a more accurate time interval reduces the occurrence of false signals. Here are four simple steps to determining the optimal interval for the calculation:

1. Open up the stock's yearly chart.
2. Locate two highs or two lows on the chart.
3. Take note of the time interval between these two highs or lows (cycle length).
4. Divide that time interval by three to get the optimal time interval to use in the calculation (1/3 of the cycle)."


more relevant that you might previously thought

Enjoy

http://madscalper.com/videos/confluence_trading_video/confluence_trading_video.html?aid=8160

Thanks

That was nice video! Thanks!