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suk1000k · #**421** (**permalink**) 04-22-2008, 09:56 AM

I took two longs this morning, one of them was below the moving averages (shame on me really)...

But the second was "according to the rules" I think...

1) I noticed therere was a long wick on the 5 min candle at 10:30 on my chart (9.30 uk time). Also the CCI was overheated as well as the RSIs on the 5 minute chart.

Although below EMAs H1, the setup was good enough for me to go long.

The next M5 candle had a long wick showing me sellers might be in play so I wanted to wait for retrace...

Notice the RSI2 how it turns up on the second bearish candle. This was my entry (on the lose of this candle) The CCI has had a chance to retrace and although TCCI has crossed zero, I'm getting from chopzone and sidewinder, that a CCI zero line reject is "good" - ie will signal continuation of upward move3.

The RSI 2 though was ma gift here. t turned up a had had a chance to retrace, so it was a valid entry now. (Notice how RSI2 on H1 and H4 are above the green RSI4.

Incidentally I missed the short this morning, so I'm pleased to have got pips out this morning in the long.

I would also like to point out on the second M5 the rising volume (above average deonted by SMA13) onn the bullish candles and the decreasing volume on the correction. This also gave me confidence to take the retracement entry. This chart shows my variation on te traditional XO method which I still have up - and working a treat I might add in this instance!