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Wednesday, February 23, 2005


YM_022305.jpg

I can't give enough kudos to JoAnne for her PT primer. It's opened my eyes to a previously incomprehensible trade. After two days of trying to spot them, I'm hardly an expert. Actually, I'm still a PT bozo, but I think I'll be able to get it with more screentime on it. One thing I'm looking at now is a possible connection with good PT setups coinciding with the 5th CCI "warning bar" which signals the upcoming 6th bar change of trend. Just check out those red circles on the chart. The yellow bar is missing (I took them out, signifying that moment with the gray background bar) but maybe I'll put them back in. Nothing says "warning" like yellow, right?

There aren't guaranteed PTs at every yellow bar, and even if there is one, it may not be a good one depending on whatever nuance you're using with them. But it may be a good place to stay alert for one.

olmikey's shared his MACD on his blog. It showed a great divergence short this morning. I've applied the Sierra Zig Zag dll to the prices also. I suck at spotting at divergences, but they're a pretty handy weapon to have in the arsenal. If I still can't spot a diver with this bright green macd and bright green zig zag, then I just can't do them.

The Fisher Transform is something I've always had. It's a trend indicator that's basically my last look for help if I've become totally clueless. It can lag on you, but you'll never get hurt badly just trading in the same direction as the fish and avoiding going against it.

The 34 ema is basic stuff for all CCIers. I'm as guilty as anyone of not keying off it enough. A price chart with only the 34 ema might do me wonders. The 9/30 is a price action based x-over system by Mike Bruns detailed here. Using the 34 as the last line defense for the 9/30 looks helpful.

1 Comments:

At 8:02 PM, Blogger Fearless said...

I'm really awful at spotting divergences in realtime. They only become apparent a few bars after the fact. I've put this zig zag thing on my Sierra charts that puts lines on the price trend. It's dummy work to follow two lines. I've even had to make them the same color. It helped this morning, though, so maybe that's the perfect dumb down recipe for me.

 

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