The "Super Coil Break" trade

[cooter]

	Quote:	walterw
	my small keltners on a 55Tick chart from russell a 100 exp 2.5 atr keltner (white)...

The outside keltner(black), would the atr be 5 then?

[walterw]

	Quote:	cooter
	The outside keltner(black), would the atr be 5 then?

correct.. 2.5 white, 5 black...

[walterw]

Today there was a nice small coil break I followed on real time, didnt trade it... just observation... I liked how it performed on the second break... there was great velocity on that second break confirming we where heading south.... cheers Walter.

[walterw]

And finishing the day another one... in this case timing with cci... cheers Walter.

[walterw]

If you have a "SUPER COIL" wich means its laaaarge coil.... when you have a break, you may want to enter on the break ....

When you have a "NORMAL COIL" wich means normal size... you dont want to enter on the break, but on the pullback continuation...

I atach an explanition of the two types of pullbacks you may have after a break... one is outside the coil, other is inside the coil...

if its outside it will be very similar to a "flip" concept...

if its inside the ideal pullback should not cross the midle level of the coil thus showing weakness, and for timing you can take the trade with a cci 0 line cross OR you can take the second break wich most probably will have success...

Coil Breaks respond to the intrinsic concept of contraction and expansion of the market conditions...

Market its similar too a lung... it gets air (expansion) losses air (contraction)... thats why you can expect after a very large contraction to get a very nice expansion...

Whats the worst scenario on a coil break trade.... well going from coil to coil... very dull market... he just doesnt want to take off... in that case you want to close your trade, take your cat and go to the park... tomorrow there will be plenty more trades... cheers Walter.

[walterw]

Today at the very beggining of the day I observed (did not trade) this nice clean coil break...

What called my attention was that it started forming after only 10 minutes of session, and had 12 minutes long with an almost perfect morfology... wich for that time of the day we could consider it "long coil"...

The confirmed break of the white keltner would have made a very nice entry... and for exits should be considered a re-entry to the keltner... cheers Walter.

[dupaski]

Walter,

Thank you for this thought provoking thread. Could you clarify the actual settings you are using for the KC's?

[walterw]

	Quote:	dupaski
	Walter, Thank you for this thought provoking thread. Could you clarify the actual settings you are using for the KC's?

shure Dupaski ¡¡ the previous chart is a russell mini 55 tick chart with a 100 keltner exponential 2.5 atr (white ) and 5 atr (black)... I actually use this chart for my "flip" aproach.... also long coils between the white keltners can get sweet breaks... glad to help, cheers Walter.

[walterw]

I am paying attention to this almost 1 hour coil... will it be a super coil break ? we will see.... cheers Walter.

[walterw]

Almost 2 hours coil.... mmmm... will this be a super coil break ? maybe yes, maybe not... but the contraction expansion concept could have potential here... cheers Walter.