Woodies CCI trading system
- Thread starter kkeskar92
- Start date
While reading a pdf on Woodie CCI System I was confused at what does bar meansHi Linkon7 and kKeskar92 and other guys who want to trade Woodies CCI:-
After Having Woodies CCI Sytem introduced by my friend , i am big fan of his system..Previously i hated indicators and concentrated on simple Price Action...but realised thats very Long way to go as it required understanding and patience to read them through Charts..Indicators help them to dissect this confusion...but it’s not always the Fact..( and still I hate them as they are all lagging)
One has to know how to interpret them with Price Action Strategies involved Only them u can succeed...
My Point is Use the Good Indicator Based System and Price Action simultaneously to take out High Probability Trades with Money Management and Emotional Control...Chances are u will be in profit or break even most of time, barring some Losses due to unexpected adverse conditions...* (Just dont think of Losses now; keep in mind the outcome is not in ur hands- Mark Douglas)*
What I am going to say after Having read all the pages and the discussions My way to trade the Woodies CCi which Have Proved Benefical till now....( atleast my trading Losses have covered and now i did not blow up my account... but still ….yet to be profitable)
I am basically a Swing Trader but sometimes do make Intraday Trades occasionally if i feel like....or the condition force me to do...
Here is my rough basic trading Plan which is still in progress but its my raw idea that has been documented for u...( every trader can use ur own ideas and make his OWN Plan)
Here it goes
Step 1:-- I use relative strength to weed out high volume "in the trend" stocks, that means i take about 20 bullish trend and 20 Bearish Trend stocks and try to find out the trades in them... For example Rcom, Indiabulls and Punjllyod for shorting and Titan, BajajAuto and Hdfcbank for buying...
Step 2:- I try to predict the market behaviour in coming days and plan Long/Short stocks as per current trend...if I feel Market may go up...Hdfcbank and titan are taken as long and if market my fall ...rcom and indiabulls for short position
Step 3:- I use Woodies CCI Sytem with only ONE-Trend Continuation Pattern or ONE- Trend Reversal Pattern, that is I use ZLR for Continuation and Ghost trade with Divergence as Trend Reversal..( this is suggestion by Woodies Himself till u become experienced)
Step 4:- This is the Second most important part of my trading Plan---After Exploring for the Bullish/bearish trades as mention in previous steps I explore the Wodies CCI system from Amibroker to have some signals accordingly...Read carefully------I dont take each and every trade of ZLR or Ghost pattern given by my system what i do is Try to add some thing with each signal to come to conclusion
wait I will tell u
I match every signal with the some thing extra in comparison with other signals of the same exploration
For Example
a-- ZLR with Support/resitance levels or Breaks or /and
b-- ZLR with trend line Breaks or/and
c--ZLR with Inside bars or NR4/7 setups or/and
d-- ZLR with Candlestick Patterns or/and
e--ZLR with Chart Patterns or/and
Same with Ghost patern with Divergence
As u know i cannot get everything but more the extra odds more the better as i cannot take lets say 6 ZLR trades, may be 3/4 which are in conjunction with above signals.. that makes my odds even more better with low risk- high reward i.e 3:1 trades
CAUTION- Try to be simple and avoid "Analysis Paralysis"
Step 5--- After Selecting the trades with high probability - low risk trades i then specify my entry, targets, stoploss and trailing stoploss etc.. in a plan
For example I made a Trade in Titan....waiting 2 days and 4hours …as per my plan i waited for the good entry conditions and exited due to trailing stop because it was at previous Support with high volume t and of course ZLR in Weekly buy signal
(OK one thing more ....i use multi time frame analysis....with confluence of signals after selecting the trades....For Swing trading it is Weekly>>>Daily>>Hourly and for Intraday it is 30 min>>>>5 min>>>1 min Confluence of signal means ZLR should come in Weekly daily and Hourly at the same or next day)
Step 6:- The most important part of the trading plan----u guessed it right --- Money Management, Its upto you guys as I try to do Scaling in and Scaling Out with position sizing techniques with emotional control that is patience and discipline. This is the area one should work harder including me as this is the only step that differentiates with Profitable/Non- Profitable traders
So to summarise
Step 1:- Market/ Stock Selection
Step 2:- Taking ur view in overall market
Step 3:- Trade Exploration as per ur system
Step 4:- High Probability Trade Selection
Step 5:- Trade Management
Step 6:- Money management and emotional control
I think this makes u easy for beginners to have a good trading plan and try to make of ur own…
Nothing is 100% but make sure u don’t lose and if u lose ---lose little…
If anything u don’t understand or if I may be able to express please tell me as I would love help u out
Bye
Kevin Shah
After Having Woodies CCI Sytem introduced by my friend , i am big fan of his system..Previously i hated indicators and concentrated on simple Price Action...but realised thats very Long way to go as it required understanding and patience to read them through Charts..Indicators help them to dissect this confusion...but it’s not always the Fact..( and still I hate them as they are all lagging)
One has to know how to interpret them with Price Action Strategies involved Only them u can succeed...
My Point is Use the Good Indicator Based System and Price Action simultaneously to take out High Probability Trades with Money Management and Emotional Control...Chances are u will be in profit or break even most of time, barring some Losses due to unexpected adverse conditions...* (Just dont think of Losses now; keep in mind the outcome is not in ur hands- Mark Douglas)*
What I am going to say after Having read all the pages and the discussions My way to trade the Woodies CCi which Have Proved Benefical till now....( atleast my trading Losses have covered and now i did not blow up my account... but still ….yet to be profitable)
I am basically a Swing Trader but sometimes do make Intraday Trades occasionally if i feel like....or the condition force me to do...
Here is my rough basic trading Plan which is still in progress but its my raw idea that has been documented for u...( every trader can use ur own ideas and make his OWN Plan)
Here it goes
Step 1:-- I use relative strength to weed out high volume "in the trend" stocks, that means i take about 20 bullish trend and 20 Bearish Trend stocks and try to find out the trades in them... For example Rcom, Indiabulls and Punjllyod for shorting and Titan, BajajAuto and Hdfcbank for buying...
Step 2:- I try to predict the market behaviour in coming days and plan Long/Short stocks as per current trend...if I feel Market may go up...Hdfcbank and titan are taken as long and if market my fall ...rcom and indiabulls for short position
Step 3:- I use Woodies CCI Sytem with only ONE-Trend Continuation Pattern or ONE- Trend Reversal Pattern, that is I use ZLR for Continuation and Ghost trade with Divergence as Trend Reversal..( this is suggestion by Woodies Himself till u become experienced)
Step 4:- This is the Second most important part of my trading Plan---After Exploring for the Bullish/bearish trades as mention in previous steps I explore the Wodies CCI system from Amibroker to have some signals accordingly...Read carefully------I dont take each and every trade of ZLR or Ghost pattern given by my system what i do is Try to add some thing with each signal to come to conclusion
wait I will tell u
I match every signal with the some thing extra in comparison with other signals of the same exploration
For Example
a-- ZLR with Support/resitance levels or Breaks or /and
b-- ZLR with trend line Breaks or/and
c--ZLR with Inside bars or NR4/7 setups or/and
d-- ZLR with Candlestick Patterns or/and
e--ZLR with Chart Patterns or/and
Same with Ghost patern with Divergence
As u know i cannot get everything but more the extra odds more the better as i cannot take lets say 6 ZLR trades, may be 3/4 which are in conjunction with above signals.. that makes my odds even more better with low risk- high reward i.e 3:1 trades
CAUTION- Try to be simple and avoid "Analysis Paralysis"
Step 5--- After Selecting the trades with high probability - low risk trades i then specify my entry, targets, stoploss and trailing stoploss etc.. in a plan
For example I made a Trade in Titan....waiting 2 days and 4hours …as per my plan i waited for the good entry conditions and exited due to trailing stop because it was at previous Support with high volume t and of course ZLR in Weekly buy signal
(OK one thing more ....i use multi time frame analysis....with confluence of signals after selecting the trades....For Swing trading it is Weekly>>>Daily>>Hourly and for Intraday it is 30 min>>>>5 min>>>1 min Confluence of signal means ZLR should come in Weekly daily and Hourly at the same or next day)
Step 6:- The most important part of the trading plan----u guessed it right --- Money Management, Its upto you guys as I try to do Scaling in and Scaling Out with position sizing techniques with emotional control that is patience and discipline. This is the area one should work harder including me as this is the only step that differentiates with Profitable/Non- Profitable traders
So to summarise
Step 1:- Market/ Stock Selection
Step 2:- Taking ur view in overall market
Step 3:- Trade Exploration as per ur system
Step 4:- High Probability Trade Selection
Step 5:- Trade Management
Step 6:- Money management and emotional control
I think this makes u easy for beginners to have a good trading plan and try to make of ur own…
Nothing is 100% but make sure u don’t lose and if u lose ---lose little…
If anything u don’t understand or if I may be able to express please tell me as I would love help u out
Bye
Kevin Shah
Last edited:
Hi guys, got to read an article from Sudarshan Sukahni's Blog today:
""Arthur Sklarew, is author of 'Techniques of a Professional Commodity Chart Analyst'. In writing about the rule of multiple techniques he states:
Technicians know very well that price chart analysis is not an exact science. No single chart technique yet discovered is infallible. Despite this lack of perfection, price chart analysis can very often give reliable forecasts of trend direction . . . Confirmation is therefore an essential component of every valid chart signal. In addition to comparing price charts of different contract months and time scales, it has been my experience that the accuracy of any technical price forecast can be improved greatly by the application of a principle that I call the “Rule of Multiple Techniques.”
The Rule of Multiple Techniques requires that the chart technician not rely solely on one single technical signal or indicator but look for confirmation from other technical indicators. The more technical indicators that confirm each other, the better the chance of an accurate forecast. The logic behind this rule is that, if individual timeproven techniques tend to be right most of the time, a combination of several such techniques that confirm each other will tend to be right even more frequently""
Now that confirms the role of confluence of signals very popular in forex trading for analyzing and spotting high probability trades that is also used in my trading plan above
""Arthur Sklarew, is author of 'Techniques of a Professional Commodity Chart Analyst'. In writing about the rule of multiple techniques he states:
Technicians know very well that price chart analysis is not an exact science. No single chart technique yet discovered is infallible. Despite this lack of perfection, price chart analysis can very often give reliable forecasts of trend direction . . . Confirmation is therefore an essential component of every valid chart signal. In addition to comparing price charts of different contract months and time scales, it has been my experience that the accuracy of any technical price forecast can be improved greatly by the application of a principle that I call the “Rule of Multiple Techniques.”
The Rule of Multiple Techniques requires that the chart technician not rely solely on one single technical signal or indicator but look for confirmation from other technical indicators. The more technical indicators that confirm each other, the better the chance of an accurate forecast. The logic behind this rule is that, if individual timeproven techniques tend to be right most of the time, a combination of several such techniques that confirm each other will tend to be right even more frequently""
Now that confirms the role of confluence of signals very popular in forex trading for analyzing and spotting high probability trades that is also used in my trading plan above
IS there any software where i dont have to read all indiators etc.
i should get information to buy this and sell at thhis price. if i click
i should know the details, why that price will go
I will open, it should have following things first.
1. Market Trends Up Trend/Down Trend
2. Market Range
3. Stop Loss
4. Target Price.
Predictated percentaget using indicators.
j
i should get information to buy this and sell at thhis price. if i click
i should know the details, why that price will go
I will open, it should have following things first.
1. Market Trends Up Trend/Down Trend
2. Market Range
3. Stop Loss
4. Target Price.
Predictated percentaget using indicators.
j
Hi sri1nu3,
You don't need to go through the complicated DVDs etc... You just need to know how to use the CCI signal. I have been using the signal for doing Intraday on NIFTY futures. You can visit my thread where I have given the charts for each day.
http://www.traderji.com/trading-diary/69299-raj-trading-diary.html
Actually it is verysimple. I am using a 5 minute chart with CCI(14). To enter LONG, the CCI(14) signal should be greater than 100. For entering short the CCI(14) should be less than -100. You can exit based on you trading plan.
You don't need to go through the complicated DVDs etc... You just need to know how to use the CCI signal. I have been using the signal for doing Intraday on NIFTY futures. You can visit my thread where I have given the charts for each day.
http://www.traderji.com/trading-diary/69299-raj-trading-diary.html
Actually it is verysimple. I am using a 5 minute chart with CCI(14). To enter LONG, the CCI(14) signal should be greater than 100. For entering short the CCI(14) should be less than -100. You can exit based on you trading plan.
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