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Nvesta81

Woodies CCI technique.

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  BlowFish said:
I didn't get the impression he was "mad and upset" I am not sure how you did. The figures for success, failure and scraping by, are much the same as for any other business. In that regard there is nothing 'special' about trading.

 

I wonder if a steady stream of small retail traders are needed to provide us with counter parties? For example when a hedge fund runs its self from many billions into liquidation that provides lots of food for many us? Just a thought that occurred to me whilst typing this. Mind you I don't buy into this 'the big guys win and the small guys lose' idea. The commitment of traders report would suggest otherwise. This is the opposite side of the that particular coin and is also hyperbole.

 

I am surprised DB nominated it when he usually takes a hard line against hyperbole and rhetoric.

 

You don't sense any bitterness here BF? Why else would this person find this thread and start posting his rubbish?

 

He's pissed and looking to bring others down w/ him. That simple.

 

He wants reassurance that his opinion that the market is rigged and a big gamble is correct, but he's not finding that here. He's looking for other small-minded thinkers to reinforce what he has learned himself. He's looking for someone out there to chime in and say - yes, this is not a fair game and Las Vegas lays better odds.

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Woodies CCI technique is like any other technique. They all work.....but you have to follow the rules and be consistent and disciplined. That is the key.

 

Have a trading plan.....not in your head, but on paper....and follow it to the letter.

 

There is no holy grail in trading. As traders, we have to realize and accept the fact that we will have losers, but as you become more experienced (consistent), your winners will out number your losers.

 

It is important to find a trading style that matches your personality. If you are a buy and hold person, then scalping definitely isn't for you. I've used Woodies cci to trade longer term (options), and it works well there too.

 

I agree that sometimes Woodie can be a bit stern, but his website, chat, and technique is offered for free. I stopped logging on to the chatroom because I find it distracting at times. Let's face it, trading can get really boring, especially when the market is slow. But, I learned a lot just from listening to radio Woodie. Learning to recogize the patterns was a big step in the right direction for me.

 

I use the patterns to help me find a trade setup, but I have also combined the patterns with other things to confirm before entering, and it works for me.

 

Technical analysis can be very addicting. As a beginner, I probably tried every indicator out there, and what I've found is they all tell you the same thing. It is a matter of learning to TRUST what you see and "own" it....then once you are comfortable, use it, but use it wisely, follow your trading plan.

 

If anyone else uses CCI to trade and would like to share "other ways" they use it to trade successfully, I would welcome your comments....perhaps we could start another thread.... :missy:

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  brevco said:
Woodies CCI technique is like any other technique. They all work.....but you have to follow the rules and be consistent and disciplined. That is the key.

 

I can't say that I agree with this. Not all techniques work and if your technique is not profitable, you can follow the rules and be as consistent as you like, but you will still lose money. Consistently so.

 

  Quote

There is no holy grail in trading. As traders, we have to realize and accept the fact that we will have losers, but as you become more experienced (consistent), your winners will out number your losers.

There are many profitable techniques with more losers than winners and becoming more experienced is not going to change that. Having more experience will just help you accept that and realize that being profitable is more important than being right more than you are wrong.

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Nvesta,

 

The best part of Woodies CCI Club is that it introduces people to CCI who may not have heard of it before. Having said that, CCI is an indicator and all indicators by their mathematical nature are derivatives of price. They are variables based on price and therefore cannot lead price. In my experience CCI like most other indicators that oscillate can be usefull as either confirmation tools of what price is doing or can sometimes be used as a divergence tool when chart formations occur at key levels, i.e. double tops and bottoms. They can also be helpful to identify possible over bought/over sold conditions in a trading range. But as Walter mentioned, you have to see price in order to gauge proper supply and demand levels. When price revisits a prior s/d zone CCi can be a useful to look at for shifts in momentum that may confirm a reversal of current price direction. Changes in momentum will often precede price action but not lead prices themselves. Just looking at an indicator CCi or any other indicator for that matter, independent of price is not good advice for a new trader in my opinion. The master traders of yester year all looked at price charts or read the tape, not CCi.

 

Best of luck in your trading.

 

Cheers,

 

Spcul8r

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Let me tease you a little... Would a system only be profitable if you were the first to enter/ exit at the right moment? OR could you wait for others to lead the way?

 

spcul8r -> Isn't tape reading lagging?

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From what I understand Woodie does not trade he just herds the sheep... Here is a link that may provide some insight look under Guru Crapola

 

I do believe CCI can be used to enter trades but I think you have to look at the triggers hand in hand with s/r and not take every signal that fires.

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i found woodies CCI to be a breathe of fresh air when i first met them, i even met Woodie a few times for local meeting of the 'club'.

 

This is a system that has a very small few doing well with, and the rest are all trying to get it to work. this may be true for more educational sites, but this one is a little different.

 

Due to the fact that you are learning a system that is SO far away from most technical analysis systems that it feels as though you are sacrificing your overall development as a trader by following Woodies instructions to "ignor the damn price bars", which has a good reason behind I understand, but it still is a little strange and a hard way to make a living as a trader....you feel as if youre leaving the proven systems that govern our industry behind...only to watch the Woodie's pattern for the rest of your life....yawn....zzzzz :)

 

This community can be a great first experience for a trader b/c they will accept new members with open arms, however, I dont see them as being equipped to train people to trade the way it appears.

 

with a free community comes the addition to ego-trip moderators, new traders who think they can teach others, and of course the question on everone's mind is always....where is all the money going? Certainly not all to charity!

 

Like anything else, use cautiion and dont get locked into it for the rest of your career, but use it for what its worth, and you will be the one to find out how much value it will bring to your trading.

 

Best of luck!

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It doesn't matter who teaches it, but creating a trading plan is absolutely the most important aspect of becoming consistently profitable in trading. Woodie teaches this, as do many others. I paid $12,500 for this education and if I had found Woodie first I'd still have that money. It's not so important what the plan is, as long as you have one that is backed up with statistics and it suits your personality. Mark Douglas in "Trading In The Zone" talks about assuming the 'probabilistic mindset.' Your trading plan is your edge. If you have an edge, you really don't care if any particular trade is a winner or a loser becuase you know that your edge will prevail over time.

 

I would guess, based upon the many many conversations I've had with traders, that about one in ten actually has a trading plan. (You know who you are, people.) Often when I ask "Do you have a plan?" the response is "Yeah, in my head." To me that means, "NO I DON'T HAVE A TRADING PLAN."

 

When I teach people to create a trading plan, I break it into three parts:

 

1. What do you use for support & resistance levels? This can be broken down into two categories: Static & Dynamic levels. Static levels are those which do not change during the trading day (e.g. Floor trader pivots) Dynamic levels change during the day (e.g. Moving averages)

 

2. What triggers a trade entry? This is where you determine which markets, charts, timeframes & indicators you use to define your setup. Part of defining your setup is the trade entry trigger

 

3. How do you handle money management? This is where you define your stops, targets & other exit conditions.

 

If you have all three of these elements defined so clearly that a programmer could take your specifications and create an auto-trader program, then you have defined your trading plan clearly enough.

 

Woodie defines all three of these elements in his trading methodology, which is available on his website. The remarkable thing about his system is that while most people define support & resistance with price bars, Woodie uses an indicator (CCI) to define it. I trade his system, but with my own modifications. His methodology alone can make money, but only if you put the trades on like a machine. This is because some of the most ugly looking setups are the biggest money makers, and some of the prettiest ones that come along during the trading day can be losers.

 

The bottom line to success: Have a trading plan, and then trade that plan only.

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If you put the CCI and MACD side by side with the same timeframe you can see the CCI crosses the zero line when the MACD crosses it's signal line. So the MACD has the advantage of it's own zero line as well which denotes momentum.. the signal line and CCI's zero line merely denote short term trend.

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