Here is a way to define the trend and how to define a trade entry and exit that has been working nicely in the Coffee futures for the past 6 months.
The last 2 trades were losses but there is a trade now that is in small profits.
The box in the top-right of this window shows the P&L of the signals from March forward.
1st - Define the trend - If RgMov (blue line) makes a 2-month low, then that is a downtrend. (2-month high for RgMov is an uptrend). 2nd - Wait for an 11-day CCI reading in the opposite direction of the trend. So, if RgMov is a downtrend, look for short term overbought readings of +100 in CCI(11-day) and then place a sell order once the price falls under the low of the range. 3rd - Place a buy-stop (stop loss) above the high of the last rally (if downtrend and selling short) or place a sell-stop (stop loss) below the low of the last decline. 4th - Exit on close once the CCI reaches the -100 for shorts, or +100 for longs.
Simple as that. Repeat the process.
ALSO: You don't have to keep taking signals if this system stops working. I suggest that if the 2-month trend of profitability is BELOW the 50% speed line or the 50% mark of the P&L, then stop trading the system. It means the market is no longer trending.
Cheers
Tim 10:34PM EST 9/17/2015
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pipercolt
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No don't worry about it then I'll get to it I'm hardware challenged right now.
smitheric1970
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Another great tip Tim, thanks! What is RgMov and how can I add it to my chart? Looks like a great indicator!
Prices very possibly will retest 131.85 - but 131.85 is now the Gandolf Line. You shall not pass... :)
IvanLabrie
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Gandalf line, good one :D
I'll start labeling modes like that haha.
Here's an image tutorial, someone asked this in the chatroom too:
First go to indicators, find key hidden levels in the categories.
imgur.com/a/cbLj9 Subscribe and add rgmov to your chart.
Et voila: Rgmov on chart.
smitheric1970
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Awesome, thanks Ivan!!!
timwest
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Thanks Ivan
pipercolt
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You know I can't understand why this tradingview won't let me zoom in on the chart instead of just pans the chart. I'm using an Android device and it never forMats correctly. some of the stuff here is very interesting.
timwest
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Sorry about your viewing challenges. Private Message me and I can send it to you. Can you view it on your desktop machine?
timwest
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Here's how you stop trading a system -
IvanLabrie
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This is priceless information Tim.
timwest
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There is even a 2nd sell signal (2nd green box inside the other green box) where you could have increased your position and made even more profits. I didn't add that to the graph.