School of Pimpology - page 2
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63cci
Morning folks.
This morning I am going to waffle on a little bit about the 5m chart and the CCI63.
This is not a trading system in itself, but a very good tool for getting in and out pretty smartly with 30 or 40 pips, sometimes more.
In the attached USDCHF chart from last week you can clearly see 3 different opportunities. Allow me to run them by you.
The first one was all about the break of my 60m 20&50 ma's, which are the thick red and blue ones that were in close proximity.
Look closer and you will see that my 5m 20 was below my 15m 20 and both were headed down.
My CCI63 crossed indicating the set-up, then the 7CCI, my signal, retraced back to positive and the entry was on after it crossed back through the 0.0 with the red Heiken Ashi confirming.
The exit is then the 63CCI starts to pop back above the -100 level, netting close to 40pips.
The second was was not quite so straight forward as the first with no retracement on the 7CCI. Why? Well look at ALL my moving averages above. There was nowhere to retrace to.
This one was played upon the 4ema breaking the support line with my 63CCI confirming.
The exit strategy was the same here with the 63CCI moving above the -100 level after a little 30 pip move. Since the fall wasn't aggressive, the price action had not moved too far away from the m.a's and profit taking not essential with plenty of resistance still overhead, but I am just trying to demonstrate how relatively easy it is to pick up 30+ pip trades with minimum of fuss. Do that 4 times a day and you're on your way to becoming very successful indeed.
Finally, the third move was similar to the first with the 7CCI retracing back above the 0.0 after breaking the support line with the 4ema with entry coming on the first red Heiken thereafter coupled with the 7CCI re-crossing the 0.0 from positive to negative. This was a little 70 pip move after the 63CCI rode above -100 to take the tally on this one pair alone to 140 pips in less than a day.
Next I will tile the other 3 majors on the same screen to show how these pairs faired over the same period using the exactly the same strategy for entry and exit.
Moving Averages
I have been asked about the moving averages I use and what is the best way to understand then.
There are two ways in which these work.
One is the big push away from the closely grouped averages.
Two is the retracement after the push.
Take a look at the two attached images of Crude Oil.
In the first we see the 5m 20 sat on the 5m 50, the 15m 20 on top of the 15m 50 the 60m 20 is also there and these averages are supporting price nicely.
I always like to see the 20 on the 50 for longs and 20 under 50 for shorts.
This gives me a double protection.
In this case we have a lot of protection on the downside and a lot of fresh air to fill on the upside. This particular move went 400 pips without slowing down in under an hour.
The second picture is slightly more complex.
The first thing I want to see is my 5m 20 crossing my 5m 50 before I would contemplate a reversal play. This is demonstrated in the first highlighted area.
In this instance and every instance after getting that confirmation the target area is where?.........the next m.a, being the 15m 20.
This is the most dangerous of all reversal plays as we don't even have the support of the 15m 20ema yet.
Mt personal preference, for safety's sake is the cross of the 5m 20 over the 15m 20 or better still the 15m 20 over the 15m 50 as we can see in the second highlighted area.
We now have our 1m 20 (green 4ema running through candle) sat on the 5m 20 which is sat on our 5m 50 This is sat on our 15m 20 which is sat on the 15m 50 offerring a 5 layered protection of support
Where is our target here?.............yep, you got it, our next 20ema, being the 60m 20. Only 150 pips in this one but not bad for a couple of hours work !!
You will need to study this in some depth if you are a newcomer but I can assure you it will be worth it.
I'll be back later for some more farmyard frolics. Please feel free to ask questions and vote for the thread at the top of the page.
little john
Hi pimp, Finding this a biggggggggggg help...cheers
Clarity
I have been asked that with such a 'demon' strategy why I would need to lower my standards and use a 5m chart for an entry point.
The answer to this is quite easy..........It's all about clarity.
Look at the 60m chart on the right. It's oscillating, in a non-trending market, either side of my moving averages.
Yes the 21 CCI has crossed but it's not clear-cut.
On the 15m chart in the middle it become everso slightly more obvious with my 84 & 336 (60m & 4hr) CCI's crossing the 0.0, but it's still quite daring, or at least looks that way.
However, on the 5m chart on the left its very apparent that there's a good trade to be had here.
There's even two possible entries on the 5m chart. One prior to the 60m 50 which was worth a 'punt' with a 15 pip stop and a second after the break of the 60m 50 (dark blue) which went another 80 pips.
On both occasions on the 5m my 5m20 is bove the 15m20 which is above the 60m20
This is why I use these multiple timeframe charts/indicators.
Zoom in for a closer look and the truth shall set you free (according to David Icke, anyway)
Multi Timeframe Moving Averages
In response to your very useful question Gordon, let me tell you and everyone else exactly why I use a 20&50 moving average from different timeframes.
The best answer I guess would be because they work.
My 20 is always a key support or resistance no matter what timeframe. The 50 is really for overall direction. My 20 is the most important tool in My toolbox.
So on this 4 hr chart I have the 4hr 20&50, the daily 20&50 and the weekly 20&50.
The immediate 20&50 are in pink & sky blue, the daily in standard red and blue, then the weekly in thick crimsom and dark blue.
This can be a litle confusing to comprehend so to make matters easier I have highlighted the immediate support/resistance areas in grey, the mid daily in yellow and the longer term weekly in green.
It's quite evident that each of these dogs has it's day.
Wouldn't you agree ?
Anyway, enough for one day me thinks. I'm off for a couple of sherberts and will return bright and breezy at aroung 6-6:30 UK time tomorrow morning for my morning analysis.
Have a great evening.
Good Morning FX
Good Morning. I have uploaded the CCI's you provided, but am not getting the visualization effect you have. I just have lines...... Would be very helpful please. Thanks.
First post for me here - Down with FF!
Good morning
Hi Peppertree & Cindy. So glad you made it.
Hmmmmmmmmmmm. THat CCI is a nightmare sometimes.There's only one thing for it sadly. You need to drop and drag, or drag and drop the FXSniper CCI into the 2 windows where they are supposed to be on each of the 3 timeframes.
The CCI period is already displayed in the window so it's no major drama.
Plus you also get to choose your colours.
In the colours section of FXSniperCCI you need the top 2 to represent above and below 0.0. These should be thickness 2.
Then finally the bottom 3 should match the same colour as your chart background.
One last thing. When you change the period, beneath that is something called bar-width. Change that to 0 and you're good to go.
The FXSniper will cover the standard CCI outline so you'll need to add the normal one again in order to get the definition outline.
We'll come on to higher timeframes later so don't worry about them at the moment.
I hope this helps.
I'll be back in 30 mins with the morning summary.
Pimpology Morning Summary
Morning all,
Welcome to a new week, and a few new readers which is nice to see. Thanks for your support.
For the newer readers amongst you who are unfamiliar with my reports. I usually Start with the Crude and Gold then move on to the Currency pairs.
So lets get cracking. 60m Crude and Gold telling me that they are ready for more falls, BUT we must be very careful here or else the plan for the currencies goes pork-bellie-up.
Both Crude and Gold are actually above their pivots which is indicative that we could see some upside this morning session.
Hmmm, interesting. There seems to br so much resistance above on the Gold that a break looks difficult BUT the 21CCI is up and on Crude it is trying. Crude fell almost 2000 pips last week so a small pullback to the 60m 50 at least could be on the cards to $131.50 from the current $129.50 IF the pivot holds. It's not looking overly attractive on the shorter timeframes and would much prefer to trade with the 4hr trend but it's doubtful there will be a huge amount of action until this afternoon .
I'll be waiting for a clearer direction but we all know to do in either curcumstance.
I was long Cable last week just prior to crude dumping and I did not hesitate to take a measley 7 pips from the trade.
No less than 10 minutes later Gold followed suit and my lovely long position was now more like a short, some 50pips lower.
Forget that I want 30, I want 50. If crude starts bossing Gold about, play it safe and get your cash in your pocket.
As I slightly favour Gold & Crude to the upside this morning, I am also touting a weaker Dollar.
On the currencies that would usually mean looking for a long position on EURUSD and GBPUSD and/or shorts positions on USDJPY & USDCHF but that's not telling me anything either.
Euro looks like it wants to move a bit higher with Pound looking more likely to fall. USDJPY looks like it wants to move higher whilst USDCHF looks like it want to fall.
So a bit of a mixed impression, but if I zoom in to the 5m. I can see a little Dollar Weakness creeping in.
My 15m 20 has crossed the 50, so a fall below 106.65 might pave the way for a retracement play on the USDJPY. It's gone 300 pips in a straight line pretty much and will have to pullback at some point. Just as soom a Gold and Crude make up their minds we'll know whether that's going to be today or not, but I won't be buying into it at these levels.
Euro is looking pretty good to the upside on the 5m athough its moved a bit already. Swissie to the downside if you pick your entry right.
Also worthy of a mention is the CHF PPI numbers out in a couple of hours so be careful with the last 2 mentioned possibles.
Without GBPUSD agreeing I am tempted to leave him on the sub's bench today.
Techinally it's set for a fall, but IF Crude and Gold find support that will possibly limit the downside.
IF they don't find support then this would be my best play.
Rememeber my golden rule. Stay pro-active and trade the currencies in accordance to what the Chairman & Coach are doing.
Have a good morning all. I'll be back before Midday.
Dollar weakness
This is the whole thing I am talking about on this thread and am so glad it has gone according to plan on Day 1.
With Gold and crude finding some support as suggested in the Morning post, USDJPY did fall a bit and EURUSD did move to the upside.
There's 4 possible trades here with over 250 pips profit had you read the charts with the correlation as I do in this way.
Notice the retracements on the 7CCI giving the signal on each play. Great little weapon !!
That's the London session out the way. I'll be back later for a New York preview.