Woodies CCI trading system
- Thread starter kkeskar92
- Start date
Article from one of CCI documents.
Trading CCI Trendline Breaks.
a. Because CCI Trendlines show Support and Resistance, they can be a
rich source of Fakeouts.
b. I like to draw CCI Trendlines starting from at least the +/- 100 Line.
c. Can draw a trendline from a Peak/Valley of The CCI to a Peak/Valley
of The Turbo CCI.
d. Can draw trendlines on The Turbo CCI, alone.
e. I like trendlines that are part of a CCI divergence and/or a 50%
Retracement of the Last CCI Move.
f. The longer The Trendline, The Better.
g. I look for Trendline Breaks With The Trend.
h. Trendline Breaks with The Trend, that are close to The Zero Line,
are The Most Important Trendline Plays.
i. Trendline Breaks can be done, with The Trend, without Divergence.
j. Trendline Breaks can be done, with the Trend, with Reverse
Divergence. (Very Powerful)
k. Trendline Breaks can be done, against The Trend, with Regular
Divergence.
l. Trendline Breaks can be part of a Zero Line Cross, Zero Line Re-
Cross, or Zero Line Bounce Combo.
m. On the CCI, during the opening range ("Day Session" Charts), you
can draw trendlines using the CCI "peaks" or "valleys" from the
previous day.
Trading CCI Trendline Breaks.
a. Because CCI Trendlines show Support and Resistance, they can be a
rich source of Fakeouts.
b. I like to draw CCI Trendlines starting from at least the +/- 100 Line.
c. Can draw a trendline from a Peak/Valley of The CCI to a Peak/Valley
of The Turbo CCI.
d. Can draw trendlines on The Turbo CCI, alone.
e. I like trendlines that are part of a CCI divergence and/or a 50%
Retracement of the Last CCI Move.
f. The longer The Trendline, The Better.
g. I look for Trendline Breaks With The Trend.
h. Trendline Breaks with The Trend, that are close to The Zero Line,
are The Most Important Trendline Plays.
i. Trendline Breaks can be done, with The Trend, without Divergence.
j. Trendline Breaks can be done, with the Trend, with Reverse
Divergence. (Very Powerful)
k. Trendline Breaks can be done, against The Trend, with Regular
Divergence.
l. Trendline Breaks can be part of a Zero Line Cross, Zero Line Re-
Cross, or Zero Line Bounce Combo.
m. On the CCI, during the opening range ("Day Session" Charts), you
can draw trendlines using the CCI "peaks" or "valleys" from the
previous day.
Another article from one of CCI documents.
How to master Woodies CCI system:
1. Watch your chart for a Woodie CCI pattern.
2. Wait. Watch. Keep waiting. Keep watching. Do not watch prices. Do not think.
3. When you see a Woodie CCI entry signal then react! and enter the trade with a hard stop.
4. Wait. Watch. Keep waiting. Keep watching. Do not watch prices. Do not think.
5. When you see a Woodie CCI exit signal then react! and exit the trade.
6. Go to Step 1.
How to master Woodies CCI system:
1. Watch your chart for a Woodie CCI pattern.
2. Wait. Watch. Keep waiting. Keep watching. Do not watch prices. Do not think.
3. When you see a Woodie CCI entry signal then react! and enter the trade with a hard stop.
4. Wait. Watch. Keep waiting. Keep watching. Do not watch prices. Do not think.
5. When you see a Woodie CCI exit signal then react! and exit the trade.
6. Go to Step 1.
@ kkeskar92 ,
In a Vegas Trade, say we make a HFE from 200 and then we make a swing low then a swing high. If we break the swing low (within a min of 3 bars and a max of 10 bars and the LSMA is in agreement), that is the entry trigger to go short. now question is, if the swing low made is above the +100 mark, is the break of that valid...? any criteria on the position of the swing low...?
In a Vegas Trade, say we make a HFE from 200 and then we make a swing low then a swing high. If we break the swing low (within a min of 3 bars and a max of 10 bars and the LSMA is in agreement), that is the entry trigger to go short. now question is, if the swing low made is above the +100 mark, is the break of that valid...? any criteria on the position of the swing low...?
Last edited:
Hi Linkon, Thanks for your query.
Yes...Vegas pattern is seen at the end of the trend when momentum comes all the way down from overbought condition above 200 CCI and then crosses below 100....again trend chasers jump in and try to push the price along the trend...however....majority of traders are taking profits and new shorts join them.When CCI is between 100 and 200, the price is nicely trending and swing low between 100-200 shuld not be taken as vegas trade.
Here are the criteria for vegas trade.
VEGAS TRADE
1) CCI MUST cross 200 line in the established direction of the trend.
2) CCI then reverses and MUST cross the 100 line.
3) CCI starts rounding after making a swing low/high.
4) CCI rounding can look like a cup OR peaks and valleys.
5) CCI rounding of between 3 and 10 bars is required.
6) CCI may or may not cross the 100 line during the rounding period.
7) CCI crossing of the swing low/high after the rounding is the trigger.
8) LSMA SHOULD BE green for upside move and red for downside move.
9) CZI and SI are NOT used.
Here is the concise summary of all CCI pattern criteria.
With the trend patterns based on Woodie Doc 1.1 (03/2007)
ZLR
1) Trend SHOULD BE in place. At least 6 bars or more.
2) CCI above 100 during the trend.
3) CCI dips below 100. Can go to ZL, even cross it.
4) Chop zone is Blue or Brown for at least 3 points or more in the trend direction.
5) Sidewinder is yellow or green.
6) CCI points change between bars must be +15 to +20 (Green or Blue).
7) CCI turns up and stays up with 20secs to bar close. This is the trigger.
8) CCI bar must not close above 120. That would be chasing a trade.
9) LSMA is NOT used.
TLB
1) CCI SHOULD BE in an established trend above 100 line.
2) CCI is preferred to be in a trend above the 200 line.
3) Chop zone indicator is NOT used.
4) Sidewinder in NOT used.
5) LSMA is NOT used.
6) Trend Line Break is the trigger.
7) The closer the actual trend-line break is to the Zero Line the better.
TONY TRADE
1) CCI SHOULD BE in an established trend (at least 6 bars or more).
2) CCI prints a minimum 4 bars on the other side of Zero Line (against the trend).
3) CCI SHOULD NOT print more than 9 bars on the other side of Zero Line.
4) NOT A SINGLE BAR on the other side should CROSS the 100 line.
5) Look for TLB now. Then the crossing of the Zero line triggers the trade.
6) TLB alone may also trigger the trade. This may be termed an aggressive trade.
7) LSMA, CZI, SI are NOT used in this trade.
GB100 (A ZLR that has gone too far)
1) CCI SHOULD BE in an established trend (at least 6 bars or more).
2) CCI goes to the other side of the Zero Line.
3) CCI crosses the 100 line on the other side.
4) CCI SHOULD NOT print more than 6 bars on the other side.
5) TLB back towards the original trend AND crossing the 100 line is the trigger.
6) CZI SHOULD BE Blue/Brown IN AGREEMENT with the ORIGINAL TREND.
7) LSMA and SI are NOT used.
Against the trend patterns
FAMIR
1) It is a FAILED ZLR.
2) LSMA SHOULD BE green for upside FAMIR and red for downside FAMIR.
3) The FAMIR SHOULD form between the +50 and -50 lines.
4) Completion of the Z shape at 20secs to bar close is the trigger.
5) CZI is NOT used.
6) SI is NOT used.
VEGAS TRADE
1) CCI MUST cross 200 line in the established direction of the trend.
2) CCI then reverses and MUST cross the 100 line.
3) CCI starts rounding after making a swing low/high.
4) CCI rounding can look like a cup OR peaks and valleys.
5) CCI rounding of between 3 and 10 bars is required.
6) CCI may or may not cross the 100 line during the rounding period.
7) CCI crossing of the swing low/high after the rounding is the trigger.
8) LSMA SHOULD BE green for upside move and red for downside move.
9) CZI and SI are NOT used.
GHOST
1) CCI must make 3 peaks encapsulating 2 valleys.
2) The 2 valleys are connected by drawing a line.
3) This line is also extended to the right (in the future).
4) CCI violation of this line for a 3rd time triggers the trade.
5) CZI, SI, LSMA are NOT used.
6) GHOST can form in any direction with any slant.
7) Woodie believes the slant towards the Zero Line is preferable.
8) A Ghost is a Ghost is a Ghost.
Yes...Vegas pattern is seen at the end of the trend when momentum comes all the way down from overbought condition above 200 CCI and then crosses below 100....again trend chasers jump in and try to push the price along the trend...however....majority of traders are taking profits and new shorts join them.When CCI is between 100 and 200, the price is nicely trending and swing low between 100-200 shuld not be taken as vegas trade.
Here are the criteria for vegas trade.
VEGAS TRADE
1) CCI MUST cross 200 line in the established direction of the trend.
2) CCI then reverses and MUST cross the 100 line.
3) CCI starts rounding after making a swing low/high.
4) CCI rounding can look like a cup OR peaks and valleys.
5) CCI rounding of between 3 and 10 bars is required.
6) CCI may or may not cross the 100 line during the rounding period.
7) CCI crossing of the swing low/high after the rounding is the trigger.
8) LSMA SHOULD BE green for upside move and red for downside move.
9) CZI and SI are NOT used.
Here is the concise summary of all CCI pattern criteria.
With the trend patterns based on Woodie Doc 1.1 (03/2007)
ZLR
1) Trend SHOULD BE in place. At least 6 bars or more.
2) CCI above 100 during the trend.
3) CCI dips below 100. Can go to ZL, even cross it.
4) Chop zone is Blue or Brown for at least 3 points or more in the trend direction.
5) Sidewinder is yellow or green.
6) CCI points change between bars must be +15 to +20 (Green or Blue).
7) CCI turns up and stays up with 20secs to bar close. This is the trigger.
8) CCI bar must not close above 120. That would be chasing a trade.
9) LSMA is NOT used.
TLB
1) CCI SHOULD BE in an established trend above 100 line.
2) CCI is preferred to be in a trend above the 200 line.
3) Chop zone indicator is NOT used.
4) Sidewinder in NOT used.
5) LSMA is NOT used.
6) Trend Line Break is the trigger.
7) The closer the actual trend-line break is to the Zero Line the better.
TONY TRADE
1) CCI SHOULD BE in an established trend (at least 6 bars or more).
2) CCI prints a minimum 4 bars on the other side of Zero Line (against the trend).
3) CCI SHOULD NOT print more than 9 bars on the other side of Zero Line.
4) NOT A SINGLE BAR on the other side should CROSS the 100 line.
5) Look for TLB now. Then the crossing of the Zero line triggers the trade.
6) TLB alone may also trigger the trade. This may be termed an aggressive trade.
7) LSMA, CZI, SI are NOT used in this trade.
GB100 (A ZLR that has gone too far)
1) CCI SHOULD BE in an established trend (at least 6 bars or more).
2) CCI goes to the other side of the Zero Line.
3) CCI crosses the 100 line on the other side.
4) CCI SHOULD NOT print more than 6 bars on the other side.
5) TLB back towards the original trend AND crossing the 100 line is the trigger.
6) CZI SHOULD BE Blue/Brown IN AGREEMENT with the ORIGINAL TREND.
7) LSMA and SI are NOT used.
Against the trend patterns
FAMIR
1) It is a FAILED ZLR.
2) LSMA SHOULD BE green for upside FAMIR and red for downside FAMIR.
3) The FAMIR SHOULD form between the +50 and -50 lines.
4) Completion of the Z shape at 20secs to bar close is the trigger.
5) CZI is NOT used.
6) SI is NOT used.
VEGAS TRADE
1) CCI MUST cross 200 line in the established direction of the trend.
2) CCI then reverses and MUST cross the 100 line.
3) CCI starts rounding after making a swing low/high.
4) CCI rounding can look like a cup OR peaks and valleys.
5) CCI rounding of between 3 and 10 bars is required.
6) CCI may or may not cross the 100 line during the rounding period.
7) CCI crossing of the swing low/high after the rounding is the trigger.
8) LSMA SHOULD BE green for upside move and red for downside move.
9) CZI and SI are NOT used.
GHOST
1) CCI must make 3 peaks encapsulating 2 valleys.
2) The 2 valleys are connected by drawing a line.
3) This line is also extended to the right (in the future).
4) CCI violation of this line for a 3rd time triggers the trade.
5) CZI, SI, LSMA are NOT used.
6) GHOST can form in any direction with any slant.
7) Woodie believes the slant towards the Zero Line is preferable.
8) A Ghost is a Ghost is a Ghost.
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