Fibonacci Patterns January 20, 2016 Crude Oil

Interesting Fibonacci Patterns on Crude Oil

Crude Oil today has taken one terrible pounding and brought world markets down by a huge amount. There is tremendous apprehension as to what will follow as the new day begins in Asia.
Some important developments are revealed on the technical charts. Have a look at these Fibonacci Patterns.

First the Daily Chart

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Another Simple CCI Scalping Strategy

CCI makes an excellent scalping tool, especially if you can be patient enough to wait until a divergence shows up.

To make this a little more reliable you can add a RSI indicator to the chart and check for divergences with it also.

In this example we can use CC!7 and RSI7 and that is about all we need to locate Regular Divergences.

Keep in mind that Divergences do not always work, Stop Loss is essential.

For this type of trading I use a 15 minute chart.

Here are three examples that you can have a look at and then adapt your trading style to suit.

Again, a Stop Loss is necessary. and definitely do not ‘Bet the Farm’ using this type of method.

CCI Divergences to Have a Look At January 4, 2016

Here are some current regular divergences you may be able to take advantage of.

I like to use the CCI regular divergences to find trend reversals, they work out much of the time.

Probably you will want to confirm by using other indicators or approaches.

Here are four charts that I located with regular divergences at this time.

There may be some opportunities with these, and certainly more CCI Divergences will appear as the day passes.

Good Trading!

CCI Divergence Trading Strategy As At August 28, 2015

Using CCI Divergence as a trading strategy can be quite effective, once the trend change is confirmed by price action.

I have assembled a couple charts to show current divergences which may be useful signals in coming days.

These are just a few of many that are available to observe on many time frames. I choose the higher time frames as those are the ones that I trade most frequently.

Here are some articles that describe CCI divergence and give some examples. Do note that some of these articles are a few years old.

CCI Divergence 5mn @ Forex Factory
http://www.forexfactory.com/ Wed, 28 Jan 2009 11:23:29 -0800
Bonjour à tous. I'd like to share another simple method with you and based on CCI divergence. CCI 10 (Typical price HLC/3) TF 5mn. The CCI divergence must be beyond of 100/-100. You sell the divergence when the closed ...

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CCI Divergence indicator for Thinkorswim TOS - Patternsmart
http://www.patternsmart.com/cart/ Tue, 23 Jun 2015 13:52:33 -0700
Commodity Channel Index (CCI) is an oscillator which can help traders to identify over-sold and over-bought level. VIP price is: $69. CCI Divergence indicator gives possible reversal signals when there are discrepancies between CCI and ...

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Urban Forex CCI Divergence Breakout Strategy Testing Setup
http://www.tradingheroes.com/ Thu, 13 Nov 2014 19:19:01 -0800
How to backtest and forward test the CCI Divergence Breakout Strategy. It will give you the complete testing plan and software tutorials.

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CCI Divergence Breakout Strategy for Binary Options Trading
http://www.binaryoptionsthatsuck.com/ Tue, 01 Jul 2014 03:00:01 -0700
Well… here comes the tricky part, we have to spot divergence between price movement and CCI, if you are not familiar with this concept don't drop down your weapons, BOTS is giving a helping hand just click here and find ...

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Here is a video showing one use of CCI Divergence

And here are a couple more posts on Divergence

boutique trading strategies: Can We use CCI Divergences to ...

boutique trading strategies: Divergent Opportunities for ...

boutique trading strategies: Renko Trading Strategies (1)

Enjoy!

CCI Trading Strategy as At August 13, 2015

Using CCI For Some Simple Entries On Today’s Charts.

CCI Divergence
Here is a one hour chart of EURUSD showing some Bullish Divergence

and the Daily USDCAD showing Bearish Divergence

Now we can apply the CCI 200 Trend Line break:

You can see that the entries are quite clear cut and also accurate.

I will look for a couple examples of CCI Slingshot entries from today’s charts.

Here is CADJPY daily. You can see the slingshot here, the CCI 14 has risen to the zero line while the CCI 6 has climbed to the 100 level.

On the GBPCAD Daily chart is a great example of the CCI Slingshot. If you check the price bars you will see that this is a great continuation entry that yielded quite a few pips.

CCI is a great scalping tool, you can use it on the fast time frames as well as the slower time frames. It takes a few hours of screen time to get your eyes used to picking out the entries.

CCI Divergence is quite useful and often very easy to see on a chart, particularly if you are used to drawing trend lines.

There is a few examples from the charts this morning, I know there are many more available for some profitable trade entries.

How To Build a Forex RenkoTrading Strategy to Yield 40 Pips Every Day

As traders, we all want to have a positive cash flow, we all want to make enough money to pay for our time and work, here is a Forex Renko Trading Strategy that will help to reach that goal.

What we need is a consistent strategy, a time frame in which we are going to be at the screen to do our trading and the discipline to stick at it until we succeed.

We have to know, also, that we can not get every move in the market place. It is folly to chase every move or every trend. We can only get the moves that our strategy will point out.

I have a Forex Renko Trading Strategy method to help us to achieve a reasonable amount of profits daily.

I will lay it out in simple form, hopefully so that people can understand it and see the simplicity and be able to execute successfully.

For this exercise we will be using Metatrader 4 and setting up some Renko charts.

I will briefly cover how to get the Renko charts built.

First we will open one minute charts for several currency pairs, the majors, to start with. Of course you have your personal preferences as to which pairs you like and feel free to choose. In addition to those, open a one minute chart for the Dax index.

On to each of those charts place the EA Renko 3.4 and set the bar size to 10 pips, except for the DAX which could be about 50 pips.

This action will build an offline chart for each of those instruments, open those and shrink the one minute charts.

Now, on the M2 offline charts. for each one you are going to want to change each to a 'line' chart' and go into the properties for each chart and change the 'line'  to have no color...

Now add the Heiken Ashi bars to each chart. and now we have our work charts almost set up. You will have 5 or 8 charts ready to go.

The next step is to get the indicators on the chart, the ones we are going to use to detect our entries.

Configure your chart the same as the chart in this post, the CCI SlingShot;

You need the two CCI in the same lower chart. Have a look at that post and be sure to grasp that simple method.

Do the same for all of your offline charts, perhaps make a template after the first one and apply that template to all the rest..

I think you are seeing how this system is really simple.. We are going to trade slingshots, they happen frequently and they are so easy to spot on a chart.

Now that we have the charts set up, one more thing to do.

Have a look at this post and review the 200 Trendline Break entry.  Study this one carefully.

Get used to spotting this one as it is the entry that will help you with  finding a trend change.

So far, you have a trend change entry and also a continuation move entry.... in other words, when something is moving, you can capture every part of the move, and if you are careful and disciplined you are going to do very well on each move on each pair.

One more thing we have to study before we have this concept.

Have a look at this post about CCI Divergence. Study the diagram and learn to mark this divergence both long and short. This is the warning for a pending trend change in many cases.

Now you have two patterns to enter with and a divergence tool. and nice clean charts.

You can shrink the charts down a bit and probably can watch  quite a few charts ion this way.

While the title of this article mentions 40 pips every day, I know from personal experience that this setup will give you a lot more than 40, especially if you are watching the DAX.

I am not sure if there is a simpler trading system than this, certainly the trades show themselves clearly and you have the indicator to give you precise entries.

I caution you against adding much to the charts, perhaps a 50 moving average, other than that leave the chart clean. 

Chart clutter causes confusion and will help to make mistakes.

Please be sure to use a stop loss with every entry, that is most important!

Enjoy!

Renko Trading Strategies (1)

CCI Divergence is one of those Renko Trading strategies that is simple and can be used often on most days as the pattern appears on most charts.

In this  example  the price is making lower lows while the oscillator is making higher lows and then all of a sudden the trend reverses.

As you can see, this is a simple chart with only one indicator, the CCI indicator. The Renko bars smooth the chop so that the pattern is easily seen on the chart

Of course a trader will use stop loss as with any other trade in case there is a reversal for some reason.

The CCI or Commodity Channel Index, indicator is found in most charting packages or can be located on the internet.

Look elsewhere on this blog for similar Renko Trading Strategies.

What Is Best For Determining Divergence?

How best to spot the divergences so as to improve your trading strategy?

Because I quite like using divergence as a signal for trading I am often looking at various oscillators to see which one is best.

That is a tough question to answer as oscillators are all constructed with a different method.

And each oscillator will react to a situation a little differently, sometimes showing the divergence and sometimes not detecting it.

What indicators will show divergences?

Here are a few that I have used:

• Stochastic Oscillator
• Moving Average Convergence Divergence
• Commodity Channel Indicator
• Twiggs Money Supply
• Rate of Change Indicator
• Momentum

Each of these has its own quirks and we can only depend on them after having used them for a long time so as to learn about their individual habits

What do I use?

I do scans for divergence daily and throughout the day and I scan different time frames as there are many opportunities especially in times of volatility.

My favorite chart is one with each of Macd, CCI and TMF, the reason for the three is that each detects divergences differently.

Here is the chart I am using at this time and I may well change it as time passes and I find it to be less productive. You will see on it that I have the three indicators.

Check out each of those indicators and you will see that all three are different and the warning of approaching trend change is delayed by a couple of them.

Divergent Opportunities for November 4, 2014

Here are a couple 240 minute charts that may be worth watching for a couple days as there is CCI Divergence appearing.

I like to be aware of divergences between the price and indicator as it often indicates a change in direction.  Not always does direction change but price action will point out suitable entries.


For me, CCI Divergence is most useful as it is easy to spot, the indicator is made up of only one line on the chart, everything is simple.

These charts are but a small portion of the divergences I have seen in the past few minutes, I may scan my charts daily to see what opportunities I can post.

These charts are 240 minute, perhaps the Daily charts would be more useful considering the time that it takes to do the research and build the post.

Today I have posted  three current examples, however, more would be better..! and the post length will be much longer tomorrow,

Should you have any preferences regarding the time frame, please let me know and I will accomodate your request.

Good Trading!!