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Counter trend trades and not going against CCI 252
Hey Senor Zak,
Bill's Crude trade on Post # 1016 on Page 102 is an example of what I was trying to say in my emails to you.
Other than "yes, it's been going down and due for a pull back", how do we know to take such a trade which is counter to all our indicators? Some of these counter trend trades are impulse waves rather than corrective waves and therefore produce more pips than the "trend" trades. Is there a way to identify this or is it just from experience and really knowing and understanding each instrument you trade?
Now on to the CCI 252 and your statements "Never go against the CCI 252" and "Never fight the CCI 252".
In this Crude trade, the CCI 252 has been negative and under zero for a while confirming the "short" side. If we follow your advice, we would never ever take this long, counter trend trade.
I know that all rules are there to be bent and every counter trend trade carries with it significantly more risk.
However, my paralysis analysis also tells me that even though the CCI 252 is negative and below zero, it is RISING with prices getting shallower and bottoming. Similar to the MACD, where the best entries are at maximum displacement in the opposite direction, do you look for the CCI 252 to be rising from an extreme low and then where it crosses -150 or -100 do you look to go long, counter to the trend?
And, when divergence is present, the CCI 252 could be rising while prices are still falling or levelling off bringing us on to my other subject of CCI Divergence in my emails. Normally, divergence supported by other signals and indicators, is a good indicator, except of course when the trend is strong.
If only I could start doing and stop thinking! Please sort me out O Master of the Pips!
Muchas grassy ass!
Robert
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