Trading with CCI

[smaksy]

Hi there!
Does someone of you is using the CCI as indicator to trade?
If yes, I've read that someone uses it for confirmation of a price pattern: Long if the CCI is less than -100, Short if the CCI is over 100. But I've also read that there is an other method to trade with CCI: Long if the CCI crosses over 100 and Short if CCI crosses under -100. This strategies aren't a little opposit?
Have you heard about these two methods or the second one is a fake?
Thanks and bye!
Max
:|

 

[rathcoole_exile]

what an amazing coincidence, an italian on one thread and a brit with an italian Nick both making their debuts on T2W with questions about CCI.
I can't wait for the sales pitch, it's going to be great .....

 

[lennonac]

Hi there!
Does someone of you is using the CCI as indicator to trade?
If yes, I've read that someone uses it for confirmation of a price pattern: Long if the CCI is less than -100, Short if the CCI is over 100. But I've also read that there is an other method to trade with CCI: Long if the CCI crosses over 100 and Short if CCI crosses under -100. This strategies aren't a little opposit?
Have you heard about these two methods or the second one is a fake?
Thanks and bye!
Max
:|

Hi,
I would sugest both will not get you anywhere, try setting up a chart with moving averages of 200, 50 and 20 WAIT until the 50 crosses the 200 either up or down this is the direction of your trade. Before you place the trade check a 20 period cci to cross the 0.00 mark.

So if the 50 crosses above the 200 ma and the cci crosses from below 0.00 to above then this is the time to look at taking a BUY trade. I would sugest trading this on a hourly or daily chart but no less due to the noise factor.

Hope this gets you started. Remember cci is a momentum indicator so selling if its above 100 or below -100 tells you nothing.

By following the above you will be trading with the trend which gives you a high % chance of sucess

James

 

[westernforce]

James, in the above, what is the purpose of the 20 period moving average?

try setting up a chart with moving averages of 200, 50 and 20 WAIT until the 50 crosses the 200 either up or down this is the direction of your trade. Before you place the trade check a 20 period cci to cross the 0.00 mark.

is it just the 20 on the CCI?

 

[Splitlink]

Hi there!
Does someone of you is using the CCI as indicator to trade?
If yes, I've read that someone uses it for confirmation of a price pattern: Long if the CCI is less than -100, Short if the CCI is over 100. But I've also read that there is an other method to trade with CCI: Long if the CCI crosses over 100 and Short if CCI crosses under -100. This strategies aren't a little opposit?
Have you heard about these two methods or the second one is a fake?
Thanks and bye!
Max
:|

They are not fake, they are the way that particular trader likes to interpret the signals.
I don't believe any of them because they are all lagging but there is no reason why another person should not think differently.

The best way to look at these indicators is to see a pattern that you recognise as something that recurrs under certain conditions. That could be the edge that you are looking for. It doesn't matter what the rest of us think. I think that some gurus railroad these ideas into a certain way of doing things and the learner, looking for a comfortable rule to follow, uses it as gospel. In the trading world, life is not is like that.

What you have to do is take everything with a pinch of salt and try to disprove it. Find out, over a certain period, how many trades were winners and how many were losers.

Don't forget slippage. I try to plan my entries ahead and it pays me to stick an order in.
Manual entries don't seem to work for me. Others will disagree. You see? We are all different, somehow.

 

[Tarantula]

EMA20 and CCI14 on 1hr or higher time frame

Hi there!
Does someone of you is using the CCI as indicator to trade?
If yes, I've read that someone uses it for confirmation of a price pattern: Long if the CCI is less than -100, Short if the CCI is over 100. But I've also read that there is an other method to trade with CCI: Long if the CCI crosses over 100 and Short if CCI crosses under -100. This strategies aren't a little opposit?
Have you heard about these two methods or the second one is a fake?
Thanks and bye!
Max
:|

I go for the later for breakout... you will notice that the breakout occur after, if CCI is -100 and the candle opens just below SMA20 then ready for sell, or CCI is +100 and the candle opens just above SMA20 for buy.. use TF 1hr or higher.. try backtest on 5 min.. I backtested it and it works in my favour... simple strategy for newbie...

 

[rollsafe]

Hi there!
Does someone of you is using the CCI as indicator to trade?
If yes, I've read that someone uses it for confirmation of a price pattern: Long if the CCI is less than -100, Short if the CCI is over 100. But I've also read that there is an other method to trade with CCI: Long if the CCI crosses over 100 and Short if CCI crosses under -100. This strategies aren't a little opposit?
Have you heard about these two methods or the second one is a fake?
Thanks and bye!
Max
:|

Go to Woodies CCI Club LLC they teach you how to trade with the CCI , all free, live trading and lessons everyday.

 

[Akolth]

CCI is an indicator so never use indicator for trading signal. As it's name points out, it tells you where the inner market is I call that the level III. It does not tell you well where the market is heading because they are all lagging. The only think to trade is the price and volume which are instant. The indicators for traders is like board instrument for pilots. They tells him where the plane is, how is the wheather outside, win speed, the altitud, speed of the plane, how far he flew, how far is the next airport, the turbulences on the way and the time of arrival. This is what the indicators tells but you have to pilot the price using paterns, trend lines, supports and resistances with an eye on indicators...
Let come back to CCI use. when CCI crossed zero line up (down) this is shift from downtrend to uptrend (uptrend to downtrend) when is over 100 (below -100) this is strong uptrend (strong downtrend).
Your CCI new trend must be in line with the MAJOR TREND. I mean on your 30mns chart, 10EMA over 20EMA over 50SMA in uptrend or 10EMA below 20EMA below 50SMA in downtrend. OK? So, on 5mns chart your CCI indicator must be in correct zone, go to 1mn chart and BUY at the above 10EMA all pullback which failled to close below 20EMA in uptrend (SELL below 10EMA all pullback which failled to close above 20EMA in a downtrend) all that with stop loss below (above) 20EMA and trail accordingling. This a patience trading...

 

[Akolth]

Sorry forgot some things to consider:
CCI(50)
When failed arround 20EMA with small volume ( lower than the 20 bars average volume)
10EMA and 20EMA are used as support (resistance)... better if strenghten with a trendline or horizontal support (resistance). A profecy if lined with Fibonnacci 61.8% ...

Good trading

 

[shekarj]

CCI is an indicator so never use indicator for trading signal. As it's name points out, it tells you where the inner market is I call that the level III. It does not tell you well where the market is heading because they are all lagging. The only think to trade is the price and volume which are instant. The indicators for traders is like board instrument for pilots. They tells him where the plane is, how is the wheather outside, win speed, the altitud, speed of the plane, how far he flew, how far is the next airport, the turbulences on the way and the time of arrival. This is what the indicators tells but you have to pilot the price using paterns, trend lines, supports and resistances with an eye on indicators...
Let come back to CCI use. when CCI crossed zero line up (down) this is shift from downtrend to uptrend (uptrend to downtrend) when is over 100 (below -100) this is strong uptrend (strong downtrend).
Your CCI new trend must be in line with the MAJOR TREND. I mean on your 30mns chart, 10EMA over 20EMA over 50SMA in uptrend or 10EMA below 20EMA below 50SMA in downtrend. OK? So, on 5mns chart your CCI indicator must be in correct zone, go to 1mn chart and BUY at the above 10EMA all pullback which failled to close below 20EMA in uptrend (SELL below 10EMA all pullback which failled to close above 20EMA in a downtrend) all that with stop loss below (above) 20EMA and trail accordingling. This a patience trading...

You mean to see the trade in 5 min frame and trade in 1 min frame?
Hope I have got it right.