XO_Method REVISED - page 36
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Eyetrack III - What You Most Need to Know
Link to a study on eye movements for webpage visitors.
Further Basic CCI knowledge...
I wanted to share some analysis of this trade this morning as I was applying some knowledge I learned from an excellent book on stock trading which has some very interesting chart patterns in it - "How To Make Money In Stocks" by William O Neill.
First of all of course the obvious support level is built through the latter Asia session since about 4.30am GMT. The buying action seems to be prominent with all these candles closing with huge shadows. The strategy of buying at the support level is the most obvious one.
NB Direction of 4hourly XO was up.
First entry of note is the double cross of zero line (by Turbo CCI and CCI) just prior to the blue rectangle I've drawn in. I did not trade this because I was not online at that time...
What I then noticed, was apart from it being an excellent Monday for once, was that there was a stock pattern which involves the formation of support (evident) followed by an upmove (just mentioned as entry) and then base formation (blue rectangle).
What follows is a "shakeout" --- notice how the CCI goes to -250. This is a "HOOK FROM EXTREMES" pattern and the signal is given by the turning back of the CCI (aqua vertical line) - shakeout is oval shape...
What really interested me is that the shakeout is followed by three small candles (including the doji) on decreasing volume also. So this as a good entry to me...
However I entered a little later as I was still examining the chart and here is why I felt safe to do so (**amongst other things**)...
1) Hook from extreme
2) Decreasing volume on "shakeout" followed by increasing volume on upmove
There is then a zero line cross which of course is a good sign.
But here's what really helped me to get more points from the trade...
In fact, an entry for me would also be confirmed by the break of 1.9742 (of unlimited potential - actually it went 20 points beyond - and very fast as I expected) and this is where the base formation and shakeout come in to play for me...explaination follows...
The first base formation - blue rectangle - (after the initial strong support) followed by the shakeout - oval shape - gives me a possible entry on the break of the resistance formed above (at 1.9742) in addition to the long already signalled by support plus the CCI pattern, ASCTrend and 4hr XO, stochs oscillators with plenty of "room" - therefore I fully intended to stay in the trade on the break of this level for a further 10-20 points or more - also a scalp trade to get in at 1.9742 and out at 1.9762 on the same candle.
In this instance the pattern was not as successful as I had hoped in that I had to exit the trade, but it paid off in that I knew there was potential beyond the resistance.
My own entry is a few candles after the "ideal" entry of the CCI hook from extremes. I have added a chart which reflects one of the other charts I run so you can see things like XO, Stoch oscillators, AscTrend etc... My vision was the break of resistance 1.9742 based on what I described above which was successful.
Does that make any sense?
I guess that the point of me adding this to the excellent thread here is
a) to show the hook from extremes for newbies to CCI
b) to show that it could be possible to predict a resistance break to the upside using patterns from Bill O Neills book applied to our instrument of choice
c) Notice how ValeoFX's stochastic oscillator along with a slow stochastic 5,3,3 are both at bottom of cycle in both entries and turning up
d) That there was continuous scope to go long right the way up to 1.9742 for 15 pips plus.
RSI correlation...................
During my research I discovered that the RSI-14 corresponds with the 28-EMA, only it is more accurate in showing the changes.
The same applies to the RSi-8 corresponding with the 15-EMA and therefore my usage of the RSI-8 on the H1-chart and the 15-EMA being my directional indicator.
Is it therefore strange to discover that the RSi-4 that I use deliberately on all TFs, represent the 8-EMA on the H4-chart?
I thank the Lord for opening my eyes to that. Praise be to Him.
Eyetrack III - What You Most Need to Know Link to a study on eye movements for webpage visitors.
Excellent reference Suk. Much appreciated.
Best wishes.
Further Basic CCI knowledge...
Thanks Suk. The CCi-knowledge is always welcomed as one can never get enough from seeing the entries. Not only from your eyes, but also so obvious that we all need to benefit from it. Practice makes perfect for all of us and the Newbies must be delighted with your explanation.
I will be most interested to hear what you feel about the entries on the latest M5-template.
Best wishes,
pdf of updated method
ValeoFX, I have put the weekly, 8 hourly, 4 hourly, 1 hourly and finally the 5 minute chart in to a pdf document including the illustrations for members of this forum who are following this thread to save time. I have yet to study further the 5 minute chart. Currently still managing trades.
Rgdz
suk1000k
Ahh ok. I was thinking you're a trader and an Optom combined, like "wooah, where does he get the time!"
ValeoFX, in my post number 363 I was very proud of my exit and the CCI divergence I thought I had spotted. The markets gone another 40 points. I now feel flawed in my exit there. I don't know if you took this trade, certainly "long" was screaming at me from start of day, but I missed the continuation of the uptrend on this one thinking the CCI had overheated (though only to 250) and divergence on CCI meant a reversal.
I am happy with my reentry in to long as it was right at start of move and very well spotted/risk/reward.
Will examine settings also, as I have it on 14,6 needs changing to 15/5NEVER GREEDY
Thanks Valeo !
It's impressive stuff !
ValeoFX, in my post number 363 I was very proud of my exit and the CCI divergence I thought I had spotted. The markets gone another 40 points. I now feel flawed in my exit there. I don't know if you took this trade, certainly "long" was screaming at me from start of day, but I missed the continuation of the uptrend on this one thinking the CCI had overheated (though only to 250) and divergence on CCI meant a reversal.
I am happy with my reentry in to long as it was right at start of move and very well spotted/risk/reward.
Will examine settings also, as I have it on 14,6 needs changing to 15/5