Woodies CCI technique.

[spcul8r]

Januson, you ask a rhetorical question mate. I must defer to Occam's razor, "Pluralitas non est ponenda sine necessitate"

[DaKine]

From what I understand Woodie does not trade he just herds the sheep... Here is a link that may provide some insight look under Guru Crapola

I do believe CCI can be used to enter trades but I think you have to look at the triggers hand in hand with s/r and not take every signal that fires.

[LS_Chad]

I have begun a thread in the Investor/RT forum on creating Woodies CCI chart for Investor/RT or MarketDelta for anyone that might be interested: http://www.traderslaboratory.com/for...r-rt-5409.html

[Mavrik00]

i found woodies CCI to be a breathe of fresh air when i first met them, i even met Woodie a few times for local meeting of the 'club'.

This is a system that has a very small few doing well with, and the rest are all trying to get it to work. this may be true for more educational sites, but this one is a little different.

Due to the fact that you are learning a system that is SO far away from most technical analysis systems that it feels as though you are sacrificing your overall development as a trader by following Woodies instructions to "ignor the damn price bars", which has a good reason behind I understand, but it still is a little strange and a hard way to make a living as a trader....you feel as if youre leaving the proven systems that govern our industry behind...only to watch the Woodie's pattern for the rest of your life....yawn....zzzzz

This community can be a great first experience for a trader b/c they will accept new members with open arms, however, I dont see them as being equipped to train people to trade the way it appears.

with a free community comes the addition to ego-trip moderators, new traders who think they can teach others, and of course the question on everone's mind is always....where is all the money going? Certainly not all to charity!

Like anything else, use cautiion and dont get locked into it for the rest of your career, but use it for what its worth, and you will be the one to find out how much value it will bring to your trading.

Best of luck!

[Uli Schmuli]

It doesn't matter who teaches it, but creating a trading plan is absolutely the most important aspect of becoming consistently profitable in trading. Woodie teaches this, as do many others. I paid $12,500 for this education and if I had found Woodie first I'd still have that money. It's not so important what the plan is, as long as you have one that is backed up with statistics and it suits your personality. Mark Douglas in "Trading In The Zone" talks about assuming the 'probabilistic mindset.' Your trading plan is your edge. If you have an edge, you really don't care if any particular trade is a winner or a loser becuase you know that your edge will prevail over time.

I would guess, based upon the many many conversations I've had with traders, that about one in ten actually has a trading plan. (You know who you are, people.) Often when I ask "Do you have a plan?" the response is "Yeah, in my head." To me that means, "NO I DON'T HAVE A TRADING PLAN."

When I teach people to create a trading plan, I break it into three parts:

1. What do you use for support & resistance levels? This can be broken down into two categories: Static & Dynamic levels. Static levels are those which do not change during the trading day (e.g. Floor trader pivots) Dynamic levels change during the day (e.g. Moving averages)

2. What triggers a trade entry? This is where you determine which markets, charts, timeframes & indicators you use to define your setup. Part of defining your setup is the trade entry trigger

3. How do you handle money management? This is where you define your stops, targets & other exit conditions.

If you have all three of these elements defined so clearly that a programmer could take your specifications and create an auto-trader program, then you have defined your trading plan clearly enough.

Woodie defines all three of these elements in his trading methodology, which is available on his website. The remarkable thing about his system is that while most people define support & resistance with price bars, Woodie uses an indicator (CCI) to define it. I trade his system, but with my own modifications. His methodology alone can make money, but only if you put the trades on like a machine. This is because some of the most ugly looking setups are the biggest money makers, and some of the prettiest ones that come along during the trading day can be losers.

The bottom line to success: Have a trading plan, and then trade that plan only.

[great1one]

If you put the CCI and MACD side by side with the same timeframe you can see the CCI crosses the zero line when the MACD crosses it's signal line. So the MACD has the advantage of it's own zero line as well which denotes momentum.. the signal line and CCI's zero line merely denote short term trend.