CCI 50 for Momentum Determination

[walterw]

Hello everyone, today I came across a post by a very new member mkp14 , he shared a very nice chart with a simple fibo retracement but with a very nice old technique from dr. bob (I dont know if you got to know him ).

He was originally a woodies cci club member and went on his own with the two very interesting setup techniques 5014 and 5034....

I did trade woodie cci some years ago, then drop it not for being a bad aproach, just wanted something more price pane oriented, I remeber going thru dr bob 5014 aproach wich has a lot of sense but I never really traded the aproach because I was already on my M stuff having nice success....

Now, today as I see this chart from mkp14 I did got curios again to see a 50 cci on my chart, what would it look like and what information could I get that would be interesting...


For My surprise I found something not related to normal CCI traders... and I called it : "50 cci momentum" what it means is that if your cci gets far from 0 you have momentum, if its near to 0 no momentum....


Far from 0 will be above +50 below -50 lines... if you are between +-50 you dont have momentum.

I theoretically aplied a 50 cci to a 233 Tick chart from russell, so that would be a 500 cci on a 23 Tick chart wich I feel very confortable to scalp.

On the example below, you can notice that when cci went above +50 and stayed above that level we had a very nice steady trending condition, as he went back between +-50 things got choppy....

This could sugest a nice "context" analisis....

Having that context per example you could take "Trend Trades" playing the dips and continuations....

Again, the spirit of looking to this type of indicator would be to understand market conditions and take profit from it (not become an indicatorist).... cheers Walter.

[cooter]

Just curious, could you add a 50 SMA line to the same chart that you posted as well?

It should provide you with additional context to interpret your 50 CCI readings.

[cooter]

Here's a link to the Dr. Bob file on trading the 50 CCI:

http://www.tradershaven.net/50CCIdrbobSystem050613.pdf

[walterw]

Here are some examples from today 23-4... and added the 50 ema ( wich is a 500 ema on the 23Tick chart) remember I am using the spirit of a 233 T chart... being plotted on 23 tick chart

What I am doing so far is measuring momentum.... its not even near to dr bobs trades.... any way learning dr bobs method is very instructional for the new trader... cheers Walter.

[Blu-Ray]

Walterw

Nice work, is there any chance of sharing your version of the indicator

Cheers

Blu-Ray

[walterw]

Shure Blue Ray , it has a 50 default for a 233T, if you use it on a 23Tick should be set to 500....

I atach another example from this evening... cheers Walter.

[Blu-Ray]

Thanks Walter, much appreciated


Blu-Ray

[momentom]

Walter, do you use this with your Ms?

[walterw]

momentom : nope, this is an experiment.... and it sugests trend trades, my M trades use to be contrarian (countertrend)... by the way, my best explanation of my M trades has been done on this thread : http://www.traderslaboratory.com/for...op-vs-952.html cheers Walter.

[walterw]

Here I post todays examples... you can clearly see momentum and non momentum conditions....

You will notice some blue arrows on the price pane... well thats another issue to deal with it is called: TIMING that was the "ideal" place to enter the market, now how to determine when to enter its a great issue....


Remind you that timing will be more succesfull if you have a clear momentum context...

Will share later some timing ideas, open to yours ideas too... cheers Walter