No, what it says is that we look at the MIDDLE of the TV screen involuntarily! Therefore, we will see those characters BEST in the middle of the screen. Therefore, the first window below the candles, will be seen better than any subsequent window, hence me putting the CCI-combination immediately below the candles as I take the CCI to be the best in preventing me from taking stupid entries.

Hope this helps.

Best wishes.

__________________
"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.

Hi ES,

No, it is CCI to top of indicators windows as ValeoFX regards it (literally) as the most important indicator. Based on the amount of info the brain can take in through the eye, it is important to be able to see and interpret the most vital information as a priority. Therefore placing CCI at top of chart was deemed a good idea.

I am unable to answer this one, but I guess that is also correct as it is at eye-level. The research I am referring to was very specific for TV and if you really want to know, it was research conducted into children's programs. Fascinating reading!!

Best.

__________________
"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 wanted to share some analysis of this trade this morning as I was applying some knowledge I learned from an excellent book on stock trading which has some very interesting chart patterns in it - "How To Make Money In Stocks" by William O Neill.

First of all of course the obvious support level is built through the latter Asia session since about 4.30am GMT. The buying action seems to be prominent with all these candles closing with huge shadows. The strategy of buying at the support level is the most obvious one.

NB Direction of 4hourly XO was up.

First entry of note is the double cross of zero line (by Turbo CCI and CCI) just prior to the blue rectangle I've drawn in. I did not trade this because I was not online at that time...

What I then noticed, was apart from it being an excellent Monday for once, was that there was a stock pattern which involves the formation of support (evident) followed by an upmove (just mentioned as entry) and then base formation (blue rectangle).

What follows is a "shakeout" --- notice how the CCI goes to -250. This is a "HOOK FROM EXTREMES" pattern and the signal is given by the turning back of the CCI (aqua vertical line) - shakeout is oval shape...

What really interested me is that the shakeout is followed by three small candles (including the doji) on decreasing volume also. So this as a good entry to me...

However I entered a little later as I was still examining the chart and here is why I felt safe to do so (**amongst other things**)...

1) Hook from extreme
2) Decreasing volume on "shakeout" followed by increasing volume on upmove

There is then a zero line cross which of course is a good sign.

But here's what really helped me to get more points from the trade...

In fact, an entry for me would also be confirmed by the break of 1.9742 (of unlimited potential - actually it went 20 points beyond - and very fast as I expected) and this is where the base formation and shakeout come in to play for me...explaination follows...

The first base formation - blue rectangle - (after the initial strong support) followed by the shakeout - oval shape - gives me a possible entry on the break of the resistance formed above (at 1.9742) in addition to the long already signalled by support plus the CCI pattern, ASCTrend and 4hr XO, stochs oscillators with plenty of "room" - therefore I fully intended to stay in the trade on the break of this level for a further 10-20 points or more - also a scalp trade to get in at 1.9742 and out at 1.9762 on the same candle.



In this instance the pattern was not as successful as I had hoped in that I had to exit the trade, but it paid off in that I knew there was potential beyond the resistance.

My own entry is a few candles after the "ideal" entry of the CCI hook from extremes. I have added a chart which reflects one of the other charts I run so you can see things like XO, Stoch oscillators, AscTrend etc... My vision was the break of resistance 1.9742 based on what I described above which was successful.

Does that make any sense?



I guess that the point of me adding this to the excellent thread here is
a) to show the hook from extremes for newbies to CCI
b) to show that it could be possible to predict a resistance break to the upside using patterns from Bill O Neills book applied to our instrument of choice
c) Notice how ValeoFX's stochastic oscillator along with a slow stochastic 5,3,3 are both at bottom of cycle in both entries and turning up
d) That there was continuous scope to go long right the way up to 1.9742 for 15 pips plus.

Seeing that the market is like a prancing horse, let me place the M5-chart details here for your perusal and comments.

I no longer use the XO on the M5-TF. The reason being that it is too slow for when we really want to "raid" the market for what it produces. Should you wish to continue using the XO, than I suggest you keep the setting as for the H1-chart - believe me, I have tested it like that.

First and foremost the EMAs: I can get away with 3 EMAs in total and therefore you will see that I have coloured them distinctly. These are EMA-8 as early warning; EMA-15 as direction and EMA-28 as an indication as to when the direction may change. When these 3 are close to each other, it is best to obey the 28-EMA for entries.

The other EMAs I use, are the EMA-60; 100; 180; 336 and 660. Only the EMA-60 and 100 are shown as a double line, the others as dotted-lines to show you when the Hourly chart is hitting the major EMAs there.

The price often bounces on the 100-EMA for a directional change, but it is imperative that you look at your H4 and H1-charts continuously so that you can determine whether or not this directional change is on.

The EMA-180 represents the 15-EMA on the H1; 336-EMA the 28-EMA and the 660-EMA the 55-EMA on the Hour.

I will move my stop along the 8-EMA ±spread±1 (in other words if the spread is 3, the stop will be 4).

Once I am positive, I will follow the 15-EMA with my stop as you will stay in the trade for much longer. I do NOT use a hard stop so that I get spiked out by the trade - instead I will only close the trade once the price closes above/below the 8-EMA. Often the price spikes through the 8-EMA but still closes well above / below the EMA, so better to use the 15-EMA as your "visual stop"

Also, remember that when the trade runs, the trend does not stop easily. Too often we are scared to let the trade run. Allow it to run until the 3 EMAs get close together before you exit the run.

Short runs have a different nature and those we can trade by just using the M5,s first 2 RSIs. It makes consistently good pips as long as you are not greedy. (This morning's run yielded +30; +17; +23 and +27 pips for a total of +97 by just using the M5-chart) 14 April @ 2:10am EST being the first entry for LONG.)

Secondly, I use the new indicator TRO_BUYZONE_HISTORY to show me the Hourly; 4-hourly and Daily-pivots. I found them to be invaluable.

The ARROW_RSI-14_Cross-50-dot tells you when the RSI-14 breaks through its 50-line. Usually it is a very good indication that the trade is safe in a trending market and I would add an extra Lot at this point, but use your discretion.

Underneath the candles are:

1. The CCI-15/5 with the CCI-5 clearing showing me its position to the right of my screen. This is your mainstay indicator. When the CCI-5 overheats at closing, do NOT enter. If the next candle stays in the same position and does not retrace, the price may continue upwards in which case you may enter, Read my research into this earlier in this Thread. (91% of the Time this overheating CCI-5 is correct and the price will retrace. In the other instances, it will go sideways and continue or it will pause just for one candle, before continuing, but you have at least 5M to see what might happen.

If you have read what I wrote about the positioning of the first window below the candles above in my #Post, you will understand why the CCI is taking prime position.

2. The RSI-8 and 4 combination for the M5 chart is next. Read and trade it as per my description in the H4 chart. (Study these 2 indicators carefully and you can be very successful).

3. The Hourly chart's RSI-set-up is here. Use the RSI-8/4/2 !!

4. The 4-Hourly chart's RSI-set-up is here as 8/4/2.

Looking forward to hearing from you as to whether we should move this trading method onto a new Thread or not as it is basically no longer the XO-method.

Any other suggestions are welcome and will be reviewed in detail.

Best wishes.

Attached Images

TSD-M5.gif (28.1 KB, 397 views)

Attached Files

TSD-M5.zip (25.4 KB, 183 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.

Eyetrack III - What You Most Need to Know

Link to a study on eye movements for webpage visitors.

During my research I discovered that the RSI-14 corresponds with the 28-EMA, only it is more accurate in showing the changes.

The same applies to the RSi-8 corresponding with the 15-EMA and therefore my usage of the RSI-8 on the H1-chart and the 15-EMA being my directional indicator.

Is it therefore strange to discover that the RSi-4 that I use deliberately on all TFs, represent the 8-EMA on the H4-chart?

I thank the Lord for opening my eyes to that. Praise be to Him.

__________________
"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.

Excellent reference Suk. Much appreciated.

Best wishes.

__________________
"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.

Thanks Suk. The CCi-knowledge is always welcomed as one can never get enough from seeing the entries. Not only from your eyes, but also so obvious that we all need to benefit from it. Practice makes perfect for all of us and the Newbies must be delighted with your explanation.

I will be most interested to hear what you feel about the entries on the latest M5-template.

Best wishes,

__________________
"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.