Thursday, April 4, 2013

Fibonacci Minutes 1-610


I am perfecting my trading set-up with the equipment I have to work with. I am trying to make the most of my screen space, only having a two monitor set-up, currently. The charts should look familiar, the upper ones are using the same studies; however, instead of Tick intervals, these are set in Fibonacci Minute Intervals. The same goes for the lower charts. You will also notice there are no price bars to accompany Woodies CCI. The indicator is touted as leading, so price bars only tend to confuse the picture. All trades done based off of Woodies CCI are some form of trendline break or zero line reject. I have tested this indicator for countless hours and concur that it is leading price. The Ghost pattern has proved very profitable. The one point of emphasis when trading Woodies CCI: DO NOT IGNORE THE SIGNALS. If you enter a trade based off a trendline break, and the market only moves a few ticks and then breaks the next trendline reversing, GET OUT! You will not lose this way. You will always have time to get in and out for at least breakeven--even trading off of 1 minute signals or Daily Average True Range (.75 cents, 3 Ticks). If you leg into options contracts, or keep the total under 4, you are only talking about a waiter's tip in commissions. It is much cheaper trading Futures Options, concerning commissions, than Equities. There is no $10 buy initiation plus $.75 per contract, & $10 to close the transaction. With ThinkorSwim, you pay a flat rate per contract. The default is $3.50, but if you trade a lot of Futures they will renegotiate, I attest to that. As for the indicators, when you see a zero line crossing on a longer term interval don't fight the trend! If you see the shorter intervals going back into a negative trend, it is okay to wait to see if you get a zero line reversal on the larger interval; However, once the 14 period CCI prints (Solid Black), obey the rules. The 6 period Turbo CCI tends to tug on the CCI, so pay attention to the Turbo's movements. Know how to trade this indicator before you risk real money. It is one of the best, I wouldn't open a trade without it up on one monitor. I am placing Live Futures Trades on Weekly Options that can be seen on our youtube page. There is new content daily. (www.YouTube.com/dWbstreet)