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walterw

CCI 50 for Momentum Determination

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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.

5aa70dd2e2b68_50ccimomentum.thumb.png.e05e7175c63d0394289d2e2b651040e6.png

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Guest 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.

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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.

5aa70dd3038c9_50ccimom23-4.thumb.png.cc790fc3a91979202bddaed891062d76.png

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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

5aa70dd3192a8_mom1.thumb.png.59c7aac78d7bba3ee738eccf0efae2a9.png

5aa70dd32353c_mom2.thumb.png.76fef79f6a6ddaa35319eaa48453be0d.png

5aa70dd32daa2_mom3.thumb.png.24ad6499c6f3e2e2ab2d7e67b9d70a7f.png

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Ok, here I come with a first very simple "Timing" idea.... its based on the Momentum context... you must have a momentum present.... once that is true I plot a Classic Stochastic that will go to the oposite extreme (30/70) and come back cross it.... I programed him to take color and width if the cci 50 has met the momentum conditions.... so far so good.... cheers Walter.

5aa70dd34f442_cci50timing1.thumb.png.6e4bb1089d12e4fe1e6a05c61d8fca92.png

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Here is some example today on the first hour of trading... now we know where the blue arrows come from.... its not perfect but it does perform pretty decently....

 

On next posts I will deal with stops and exits.... Still figuring out... This are pure trend trades, compatible for left brained stupid slow people like me jejejeje... no big brainer.... cheers Walter

5aa70dd359a83_timing2.thumb.png.f4755f0caf678e1ced23c2bd633fcf3b.png

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Soul : so far all the parameters I am using are for this very small chart... now the cci 50 should be 50 on a 233 T chart.... I am using it 500 (10 times) on this 23 T chart... about the stochastic will take longer waves on a bigger scale,even if we put a smaller input, similar to using a cci 14 on 233T chart...

 

I like to scalp...I do that with my M`s, thought this trend trades could perform also very well ... Russell gives you in 2-3 good trades $100 per contract... I am happy with that money on a daily basis... cheers Walter.

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mkp : sorry for my delay, I did take a small vacation with holidays here... should I remeber you this was just experimental... I dont trade this method at all... it has nice potenciall but as any technique you should get really good at it before trading.... I attach the indicators from previous posts... you can open the formulas and learn how to put conditions for color and width at easylanguage to maximize your visual aide.... should you check inputs according to interval being used.... cheers Walter.

W EXPERIMENT.ELD

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Walter,

 

I am interested to know more your CCI momentum. I am new to CCI. The CCI has 2 inputs, namely period and signal. The default is 12 days and 6 days. To use your example, please advise what are the values to input?

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Hi May, welcome aboard... The above charts (last ones) is a ym 2 Range charts with simple ma 100/34 and on the oscillator pane you have cci 50 and cci 14 for turbo... also add level +-50 on cci`s...simple and straight forward...

 

This method gets to work ok when cci 50 its above/below +-50 levels and the turbo cci 14 does the timing with the 0 line cross... you can also be agressive and time the turbo on 50 or 100 levels as posted on previous charts, now its more conservative to take entries on a turbo 0 line cross...

 

I attach an example from today, wich happens to be also an icon trade... cheers Walter.

5aa70de510dfe_ymtrendtrades.thumb.png.3341e6a7571c24ddb1fc24bb4765fbb8.png

5aa70de515369_icontrade.thumb.png.093c23dd0644989583ee2c46241a7738.png

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Thanks Walter for your explanation.

:D

 

Looking at the chart, there were some crossover at zero for cci14 which you did not circled and appeared to be flip pt. or is it?

 

what is the setup for the time frame (how many mins?) with 100/34 EMA?

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Thanks Walter for your explanation.

:D

 

Looking at the chart, there were some crossover at zero for cci14 which you did not circled and appeared to be flip pt. or is it?

 

what is the setup for the time frame (how many mins?) with 100/34 EMA?

 

Hi May, the above chart has some flips, but I would not look for flips on that chart because it doesnt have keltner bands, wich is one of the conditions for flip setups... the timeframe on the above chart is 2 Range chart... now on flips I use 55Tick charts, I will be posting flips again on the flip trade thread.. I actually dont trade this 50 cci setups, I like to do some research on it, but found flip can be much easier to trade... cheers Walter.

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Hello..

 

I m interested on using woodies indicator, but can someone tell me what is the 23 tick bar timeframe? the 1 minute chart or 1 hour chart?

 

I m only using metatrader platform, so the lowest timeframe is only 1 minute chart, can someone please help me what is the 23 tick bar. Thank you.

 

Compobey

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Hello..

 

I m interested on using woodies indicator, but can someone tell me what is the 23 tick bar timeframe? the 1 minute chart or 1 hour chart?

 

I m only using metatrader platform, so the lowest timeframe is only 1 minute chart, can someone please help me what is the 23 tick bar. Thank you.

 

Compobey

 

 

Tick charts, each bar is formed by x amount of ticks ej. 23 ticks = 1 bar... metatrader does not have tick charts, only time based bars... the chimp on his actual aproach uses tick charts, actually on forex he uses Ninjatrader for charting purposes wich does have tick charts and its free of use... hope answers, cheers Walter.

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Regarding Woodies CCI.....you can use Ninja Trader which has Woodies CCI panel. Ninja Trader charting platform is free and they also have Range bars (or tick charts). However, you will have to have a datafeed to use Ninja.

 

If you have an account with one of the recommended brokers on Woodies website, then the data feed is free to use with Ninja Trader. In that case, the only time you pay for Ninja Trader is if you want to trade live using Ninja Trader's platform, otherwise, the data feed and Ninja trader are absolutely free.

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