There is slight misconception about the trend that i would like to discuss here. There are various method of taking the trend and interpreting it. Some use a higher bottom method, some use simple, support and resistance zone break method, some use trend lines. But when working with the CCI, the trend is established in 6 Candles, when bar are formed above or below the 100 or -100 line. Four Grey bar, then a yellow bar, and then a blue bar above +100 and red bar below -100 sets the uptrend or downtrend. It is necessity that the bar be formed above or below +100 or -100 for strong trend.
In the case of Hindpetro we can see that trend is formed from 10th may, and till now. The pattern that is forming on CCI is now a trend Reversal Pattern. A Ghost. You might see a head in between and two shoulders on the left and right. I have formed a neck line. Now This can act as a horizontal trend line breakup, or ghost entry for trend reversal. The moment this Red trend line is breaked, plus the zero line turns red, i will short hind petro and remain short untill, CCI gives a rejection to downside. If it doesnt then will ride till it gives GB100. If that is also not given then will exit once, price pierce back -100 line.
The reason i use CCI for entring is that it lets u enter the trend, before the rest of the world. One or two Candles before the rest. And ghost and horizontal trendline break up is one of the most strongest Trend Reversal Pattern.
yes there are chances that, CCI touches this Trendline and reverse back. then will wait for Horizontal Trend line breakup.
I didnt mentioned it in thread, because it was past, but few days back it was horizontal trendline break on nifty. And i didnt catch it. And see the fall we got. And see the point where we got the signal. It was right at the top, where no other indicator gave the trend reversal.
In the case of Hindpetro we can see that trend is formed from 10th may, and till now. The pattern that is forming on CCI is now a trend Reversal Pattern. A Ghost. You might see a head in between and two shoulders on the left and right. I have formed a neck line. Now This can act as a horizontal trend line breakup, or ghost entry for trend reversal. The moment this Red trend line is breaked, plus the zero line turns red, i will short hind petro and remain short untill, CCI gives a rejection to downside. If it doesnt then will ride till it gives GB100. If that is also not given then will exit once, price pierce back -100 line.
The reason i use CCI for entring is that it lets u enter the trend, before the rest of the world. One or two Candles before the rest. And ghost and horizontal trendline break up is one of the most strongest Trend Reversal Pattern.
yes there are chances that, CCI touches this Trendline and reverse back. then will wait for Horizontal Trend line breakup.
I didnt mentioned it in thread, because it was past, but few days back it was horizontal trendline break on nifty. And i didnt catch it. And see the fall we got. And see the point where we got the signal. It was right at the top, where no other indicator gave the trend reversal.
Got hammering.