I've taken this week off from live trading since Monday to go through as much of the thread as possible and corrected my CCI on the charts thanks to Valeo, and Thanks to Suk for the pdf, although may be a little old for now, it'll help me to get to grips with the basics and the development that this method has been through.

I will be finishing the thread over this weekend and get to grips with things before I go trade properly from Monday morning, I had a slightly older template and had a confusion between the names of the correct CCI. Thanks valeo 4 pointing me in the right direction.

Thanks once again Valeo for your time, pulled out a quick +23 pips on GU although it was a late entry as i wasn't trading this week otherwise there was a good 40+ pips in the taking. Samuel has done great this week, so well done Sam!

Have a great weekend valeo and everybody else.

Thank you, Valeo, for such a wonderful system and thank you, WilteredFire and PaulUK, for the great trading room. When I tried to learn the system on my own, I didn't see any light at the end of the tunnel, but now I'm confident that I will get it. Have a nice weekend!

PREAMBLE.............

The CCI saved my bacon and also in return made me enough money to call myself successful in a modest way. So, it is imperative that you understand the use of this incredible oscillator from the outset.

Far too many people contacting me either refuse to want to learn a very simple and yet, highly effective indicator and just want immediate gratification and if I am unwilling to give them the bottom line, the trash this Thread by commenting unfavourably and luckily they "go away" too.

I will do the CCI today and give you enough to be successful with for next week. Next weekend will add the RSI and the weekend after finish off the Template as I trade it.

So be warned, do NOT ask for my latest template until you have understood the use of each and every oscillator I use and how I use them in conjunction. It is VERY simple, but then I prefer to keep it that way in order to prevent confusion.

There are many people I have to thank for having helped me to get to where I am today and I have thanked most of them already at the start of this Thread, but one person stands out in the crowd as he listens to my ideas and help me reach my goals by building and modifying indicators - we have discarded many, but we kept the faith and today we are so much "richer" for having kept the faith. That man is my friend Gerhard (DayTrader) an unasuming man with a great heart and passion for trading. You are a TRUE friend not only because you give so much, but in the manner in which you give. I am honoured to be your friend.

__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

I am posting a screen-print from Thursday's trading to begin with.

I am NOT posting this Template as I want you to set it up yourself. It is easy, but gives you the "feel" for the CCI and how we treat "her" - with respect and in awe.

Let us get the EMAs out of the way so that we can focus on the main reason for this Post. You need to put 4 EMAs set on CLOSE onto your M5 template. They are: 8; 15; 60 and 120.

First up is the CCI from your CUSTOM Indicator List set @ 15. (That is correct, don't jump the gun) There is method in what I am trying to do here).

Also underneath the CCI, place the DoublecciWoody.mq4 indicator with setting of TREND @ 15 and ENTRY @ 0 - this is so that you have a histogram of the above indicator and as we are using the DoublecciWoody you have to get used to it, BUT what I want to point out is better illustrated in the single line CCI so that you have a better visual picture in your mind and know what to look for. It takes just one day of focussing on it and it is ingrained.

Add levels ±0, 165, 250, 350 in different colour to both your indicators' colour. The ZERO-line cross is the very first thing I want you to observe. DO NOT FOCUS on the candles for this excercise, but draw vertical lines through every crossing of the ZERO-line going back to November 3rd.

Now look at the candles and you will immediately see, that virtually every time the CCi-15 crosses the zero-line there is enough pips available for you NOT to lose any money!!

There are however times when the CCi-15 just dips underneath the zero-line and pulls back (it is called ZeroLineReject or ZLR in short) and that is what I wish to discuss later in this communication. The ZLR is a very powerful indication and if you are aware of it when it happens, can reward you with a great trade.

Up till now I have deliberately NOT mentioned the CCi-5 and there is a reason for it. I am posting here again, my #CCI_ALERT-5 which I want you to add to your template set @ 165. Make sure that the cbars are set big enough to go back to November 3rd - like 5000. This will show you when the CCi-5 "overheats" and in 92% of times, the price will either go back up or sideways. You DO NOT want to trade this overheated CCi-5 unless the price continues in the same direction, in which case you follow 1 candle later. (I would rather be save than sorry)

SO BACK TO THE IMAGE ON YOUR SCREEN FOR DETAILS:

Note the #1 vertical line to the left @ 08h50. This chart is GMT+2 so where I am this chart is ONE hour behind my local time, but correct for CET.

On the 07h55 candle the CCi-15 crossed the ZERO-line for the first time and you will see that from the lines you have drawn, BUT the CCi-5 overheated which is evident from the "white cap" around the spike of the candle and immediately, the price went back up again. (Enough about CCi-5 for now)

At 08h20 the CCi-15 once again crosses the zero-line and you could have entered right here for a price of 1.4946.

Please NOTE that there is a Fibonacci level at this point and the previous "overheated" CCi-5 candle bounced off this level. So, one will be reluctant to just follow "blindly" unless this level is broken. Had you however entered here, the worst drawback against you was 1.4956 which gave you -10 + spread and with a winner of 120 pips.

Had you taken note of the behaviour around the Fib-level however, you could have entered on the 08h50 candle with a price of 1.4918 (-28 pips) but much saver.

Please note the behaviour of the CCI-15 during these times:

During the "overheating CCi-5" the CCi-15 hit a level of -165 as well and bounced off a phenomenon that we need to investigate as I have not researched it enough yet. If you would help me to do that, I would appreciate it very much, but not the Newbies as you have a lot to learn anyway and I do not want to bother you with extra work.

The price then retraces back to the 120-EMA and CLOSES below the 120-EMA. If you are aware of this (that the 120-EMA is the TREND for me on M-5 TF), you would have taken the entry on the very next candle that turned back @ 08h15 with a price of 1.4956 which is 17 pips better than the "overheating" candle @ 07h55, knowing full well that the possibility excists that the price may bounce off the Fib.-level again and it did, but this time the drawback was not threatening in anyway (max. -1) BUT the beauty of this all is that the price never breached the 60-EMA (DIRECTION) which is a clear indication that the price was heading down.

During this time, the CCi-15 @ 08h45 makes a run at the zero-line, but as the price gets reflected off the 60-EMA, the CCi-15 gets reflected from the zero-line (ZLR) and the trade is ON.

Which brings me to the "channel" I have drawn on the CCi-15. This channel is between +35 and -35 when I noticed that during this time when the CCi-15 stays inside this channel, nothing much happens and one can rather safely trade when the CCi-15 breaks OUT of this "channel".

I marked the areas where one can see it quite clearly in blocks of Blue across the "channel".

Same applies for Vertical Lines #2 and #3.

Notice at 13h45 that when the CCi-5 overheated once again, the CCi-15 also hit the 165-level!!! Price reverses back under the 120-EMA and the trade is ON.

I also include here Spud's #SpudFibo for you. Thanks to Spud for developing a very very accurate indicator and I urge you to run it. Just notice how the price performed around these levels.

QUESTION for you:..........why not trade the candle @ 14h25?

This should be enough to keep you in the pips already.

Next Post is a little more about the CCi-5 which is a crucial part of the method and will keep you out of messy trades.

Please discuss and ask questions as there are many out there not wanting to ask on an open Forum for fear of being seen as being ignorant. You are only TEMPORARILY uninformed. Please feel free to ask and there are guys out here that will reply if I am not around. I trust their judgment implicidly.

Best wishes and hopefully I made this one clear enough.

Attached Images

xo-method cci example 1.gif (60.7 KB, 310 views)

Attached Files

	#SpudFibo.mq4 (7.6 KB, 52 views)
	#CCI_ALERT-5_Silent.mq4 (1.5 KB, 63 views)

__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

The CCi-5 is purely there to keep us out of undesirable trades as I mentioned above.

Here I have now "activated" the CCi-5 on the DoublecciWoody.mq4 so that you can see what I am talking about.

To make it clear, I took off the CCi-15 in Histogram, but you have the ordinary CCI-15 in window 1 to guide you and you can quite easily replicate this on your own screen.

So what we see finally will be posted next and that is what I want you to get used to.

Any questions?

Attached Images

xo-method cci example 2.gif (62.3 KB, 290 views)

__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

And finally what you should have on your Trading Template is what you see here.

I am sure the picture starts to fall into place.

Best wishes and enjoy the "homework". It is worth every minute you spent.

Attached Images

xo-method cci example 3.gif (69.6 KB, 295 views)

__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

Valeo, thanks for your lesson, it makes me more clear about the CCI !

and about your questions on the 14h25, this is my answer:

1. there is a white arrow to show that the CCI-5 is overheat ! and in this condition, we need to wair for one candle to see if there would be a retrace !

2. the CCI-15 was still in the channel ! and also, it had not crossed the zero line !

please commet on my answer !

and also, I have a question !

please see the candle on 14h30, after the candle@14h25, we have wait for one candle, and no retrace, and at this time, the CCI-15 is under the channel and also crossed the zero line !

so, could we enter at the close of this candle @ 14h30 ?

thanks !

Correct in both reasons and my question to you is, how did the price behave on the 14h30 candle in relation to the Fib-level?

I am out of here until Monday.

__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

GOt it ! you mean the the close of the 14h30 candle is too close to the FIb-level ! so, it is risky to enter !

thanks !

and I will re-read your last 3-posts, and looking forward your next lessons on RSI !

best wishes !

Thanks Valeo for your time and effort in posting this. Its very useful, i learnt about the ZLR and other cci patterns last year, but you've explained it better and from a better perspective, thanks for this information.