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NickTrader on No Price CCI Divergence Trading

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22:59:38 {NickTrader} here is example pic of rev diver ... 22:59:41

23:01:09 {ONO} ahh and it would be a sell as soon as the cci broke the zero
line correct?
23:04:14 {NickTrader} ONO, a rev diver is a continuation signal, terefore it
is taken with the trend, so a rev diver zlr and tlb for the 2 examples on the
chart ...

23:06:18 {speedo} ono the way I read it cci rejects zero line goes up for 20
min and rejects again and goes down
23:07:38 {DaveTrdr} nick only problem is if you look at prices on that chart
they were making lower lows vs. cci so div would not be there on rev div+tlb
on second example
23:08:02 {DaveTrdr} I mean price was confirming cci action
23:08:48 {DaveTrdr} that seems to be the only catch to trading cci with no
prices, hard to see if div is div or just tracking price 23:09:03 {NickTrader}
Dave, i dont c price, so to use cci u must use patterns.... if it looks like
a diver, then it is a diver... 99% of those will be correct 23:09:33
{DaveTrdr} ok no problem, just pointing it out in case ono looked at the same
chart w/prices on his platform
23:09:42 {NickTrader} y
23:09:48 {blinky} thats one of the resons i cam up with the name Ms and Ws :)
23:10:25 {blinky} "blinky its not a diver !!! "
23:10:26 {NickTrader} .... and there is the problem folks fixated on price....
it just spooks u ....
NickTrader on No Price CCI Divergence Trading
Page 3 of 12
23:10:57 {Nicker} Feeling really stupid, but can't figure how to know diver
from just CCI.
23:11:20 {blinky} you dont its just the pattern
23:11:46 {NickTrader} Nick, pattern.... i draw more example.... first reg
diver, that is easier to c... 23:11:57 {blinky} Nick is trading the
pattern ... it works
23:12:28 {NickTrader} here is pic of reg diver... agreed?

23:12:48 {Nicker} y
23:12:52 {NickTrader} without price i will assume that price is making higer
23:12:56 {blinky} i would need to see price to be sure :)
23:13:03 {NickTrader} but i dont really care
23:13:09 {NickTrader} lol
23:13:11 {ken g} thats tremendous –
23:13:23 {blinky} show us price Nick
NickTrader on No Price CCI Divergence Trading
Page 4 of 12
23:13:35 {NickTrader} if it smeels like a rose... then it is a rose :-)
23:13:49 {blinky} i wanna see price

23:14:31 {DaveTrdr} I would think you can filter out some losers by cross
checking price though, just my opinion
23:14:39 {blinky} that is a great setup has the tlb 100 x as well 23:14:40
{NickTrader} there is is.... official diver
23:15:09 {NickTrader} Dave, at 99% i dont care
23:15:17 {blinky} wow Nick , the pattern is still the same !!!
23:15:22 {NickTrader} lol
23:15:32 {blinky} gee
23:15:36 {blinky} thats good
23:16:27 {DaveTrdr} you two are incorrigable =)
23:16:43 {blinky} we love our CCI
23:16:46 {Nicker} NickT, thanks very much. I can see it now
NickTrader on No Price CCI Divergence Trading
Page 5 of 12
23:17:12 {NickTrader} the point is u dont need the price.... and removing it
makes for less stressfull trading cause your are not focused on price moves
that can scare u
23:17:34 {NickTrader} and u then focus on cci signals
23:18:25 {randall} Nicktrader, if you aren't looking at prices do you enter
trades with market orders?
23:18:38 {DaveTrdr} my other concern with no price is risk/stops
23:18:41 {NickTrader} I do limit orders
23:19:06 {NickTrader} u can c the price value on the platform
23:19:22 {DaveTrdr} I like to see a price peak to know where the best place
to put a stop is 23:19:31 {NickTrader} i use BT and get on the bid for long
on on the ask for short
23:20:01 {NickTrader} Dave, my stop is fixed amount.... 10tick for YM
23:20:20 {speedo} nick here was a good move today but prices werent really
making higher highs for reg diver any insite?
23:20:31 {NickTrader} i dont let it get there if trade goes against me....
it's just a safety net
23:21:14 {DaveTrdr} but volatility can change nick, sometimes drastically....
10 ticks might get you whipped to shreds
23:21:50 {DaveTrdr} some of these people with their tight fixed stops on es
are in for pain when the range starts to expand
23:21:59 {NickTrader} Dave, not found it a problem... if it's that wild than
i sit on hands cause there is indecision
23:22:21 {randall} nicktrader, how many cci bars before you decide it is not
a good trade....do you exit if one cci bar goes against you?
23:22:23 {DaveTrdr} it's not a problem under daily range contraction
23:22:58 {DaveTrdr} in my opinion when daily range starts to expand you'll
find yourself being whipped or not trading because the move appears too
23:24:09 {NickTrader} Dave, been using the same stops now for over a year and
not been a problem 23:25:31 {Nicker} NickTr, thanks for that KOOOL demo
23:25:39 {NickTrader} yw
23:25:40 {DaveTrdr} ok nick, just keep in my over the past year we have seen
a steady range-contraction on most of these products except for EUR a few
others. If it works for you great, but I think the fixed-stop ad-infinitum
theory might be flawed
23:27:06 {NickTrader} Dave, perhaps, but for now it works.... I let the
market prove to me what works... 23:27:45 {DaveTrdr} ok good, great trading
examples btw, thanks!
23:28:48 {NickTrader} speedo. the first point must be above 100 line
23:28:52 {Nicker} DaveTrdr, have u traded YG? speaking of range.... cBOT
site says avg gain 55%/contract???
23:28:57 {NickTrader} price? whats that?
23:29:00 {Kiwi} dave. I think the range contraction has done the other thing.
it hasnt yet meant that u can get a signal with closer stops .... it has
created less follow thru after the signal and a lower risk/reward. If u
look at the average range of the dow over long periods u find that the recent
(late 90s range) was exceptional whereas the range from 9293 was pretty
normal. current range is very abnormal and has almost always been associated
with a significant top.
23:29:52 {DaveTrdr} nicker haven't traded nor really watched yg, sounds wild
though.... what kind of liquidity? my guess is little?
23:29:57 {NickTrader} speedo, than u have the max number of bars violated
NickTrader on No Price CCI Divergence Trading
Page 6 of 12
23:30:15 {DaveTrdr} kiwi I've found that excess volatility actually signifies
a top in a bull market
23:30:42 {Nicker} dave..little vol I think on YG
23:30:46 {DaveTrdr} in a downtrend, this would be topping action though
23:31:02 {DaveTrdr} so it depends on whether we're in a uptrend or downtrend
which depends on your timeframe =)
23:31:11 {NickTrader} speedo, but here is a key point, once the cci has been
on the opposite side on the first point on that trend line for more than 5+
bars (trend indicator) that line u draw is not valid
23:31:56 {speedo} ok thanks much nick
23:32:19 {DaveTrdr} I figured nicker, alot of those low volume products can
be wild
23:32:19 {NickTrader} a few nuances
23:34:57 {Nicker} NickTr, so an example of no-longer-valid trendline, on the
chart you posted would be from low near 14:15 through low at 14:45, then when
it hits CCI past 15:00, more than 5 bars of long invalidate the trendline?
23:36:35 {NickTrader} this is valid ...

23:36:59 {NickTrader} confused? :-)
23:37:17 {Nicker} That's the one. yes..... what else?
23:38:19 {NickTrader} this is a tripple diver that is valid, meets all
requirements .... right?

23:38:53 {Nicker} It's still valid because the CCI is still in continuation
pattern, right? ok
23:39:33 {NickTrader} it's on the same side of cci, its within the 10-12 bars
23:39:35 {Nicker} y on triple
23:39:45 {DaveTrdr} yup
23:39:54 {DaveTrdr} blinky was showing me that kind of setup earlier hehe
23:40:08 {DaveTrdr} I was like "uhhh.... blinky... it's like over +200, how
can you short it!" =) 23:40:35 {DaveTrdr} it's these little nuances that you
can only pick up through great mentors, thanks to blinky and nicktrader and
all =)
23:40:53 {NickTrader} now this is just a TL.... no reg or rev diver sig...
its now used for TLB on hfe

23:41:43 {NickTrader} for a TL there is no requirement to be on same side or
max bars
23:42:02 {NickTrader} another nuance ;-)
23:42:11 {Nicker} I appreciate that NickTr. Not confused. Big help!!
23:42:45 {NickTrader} chart time, takes plenty of chart time and u will build
ur nuance list
23:43:25 {Nicker} n unace I get it, lookout market!
23:44:09 {Nicker} bad typing=bad pun
23:44:19 {NickTrader} then there is the question of which do i take?... the
rev diver or the reg diver
23:44:27 {speedo} and the tlb coinsides with right shoulder on ghost and zero
rejectof cci6? 23:44:39 {DaveTrdr} the thing I love about trading is as soon
as you think you've got this thing by the tail, it teachs you a new "nuance"
Laughing out loud !
23:44:57 {NickTrader} speedo, y but i never use turbo for signal, nor does
23:45:19 {speedo} just confirming I know
NickTrader on No Price CCI Divergence Trading
Page 10 of 12
23:45:33 {NickTrader} turbo is ONLY for drawing a TL or as an early warning,
but not signal 23:45:42 {speedo} yup
23:45:59 {NickTrader} Dave lol
23:46:30 {NickTrader} so lets look at rev and reg diver on same cci slope
23:46:31 {Nicker} NickTR, well, my guess is you take rev div if it comes
first, and where possible
23:47:35 {NickTrader} here is a rev diver ...

23:47:45 {DaveTrdr} yeah nicker I would think in trending environment to
avoid those reg div's =) 23:47:48 {NickTrader} looks good? 23:47:56
{NickTrader} looks good to me 23:48:19 {DaveTrdr} nickt I'd rather see the
div's inside the 100's 23:48:30 {NickTrader} now its a reg diver ...

23:48:35 {Nicker} y, but the diver from the two extreme tipsmay have
23:48:46 {DaveTrdr} gotchya
23:49:42 {DaveTrdr} my notes are starting to look like the us taxcode
Laughing out loud !, all of these loopholes and exceptions ;)
23:50:11 {NickTrader} the rev diver was good signal but it failed, more
likely cause it was on the extreme from zl (-50) and there was a possibility
that it could reverse to go up
23:50:16 {Nicker} That's not really a problem....you just wait and the cCI
tells you which to take o(or skip)
23:51:19 {NickTrader} but u cant wait long cause if it moves u than chase it
and it will have a higher probability to turn at the -100 line
23:51:39 {Nicker} I see now NickTr.
23:52:11 {NickTrader} so if the signal is there u take it, if it fails u bail
23:52:27 {DaveTrdr} nicktr would it be wiser to just avoid these extremes
plays? I would guess the odds start to get worse on this type of play
23:52:53 {Nicker} It's all about nick-be-nimble
23:53:40 {NickTrader} y have to be fast.... but u get to understand the
patterns after lots of chart time and u can add another nuace to ur list :-)
23:54:22 {Nicker} Love it NickTr. TY very much
23:54:43 {DaveTrdr} ok great nicktr great work thank you as well
23:56:15 {NickTrader} in this case, there were 2 consecutive cci hfe and
notice 2nd one was lower so there was probability that a third one may be
lower again or fail.... in this case it failed to develop.... usually u have
3 pull backs on a trned move, the 3rd is the most probable to reverse
23:56:49 {Nicker} k
23:57:03 {NickTrader} another nuance :-)
23:57:44 {NickTrader} if u go back over charts u can c these 3 pullbacks
develop, chack them out for visual reference
23:57:53 {Nicker} k
23:58:37 {DaveTrdr} one thing I have noticed is that if a ghost or similiar
looking HLB occurs it's best to not still be looking for a zlr+ div or zlr +
tlb or tlb + div etc.. =)
23:58:44 {Moneymaker} 3m
23:58:49 {DaveTrdr} as far as trend continuation goes
23:59:45 {NickTrader} y ghost is a reversal pattern
00:00:06 {NickTrader} head-and-shoulder
00:00:15 {DaveTrdr} yup, I find when I see that or significant HLB I avoid
playing a continuation play after that occurs
00:00:33 {DaveTrdr} that alone is a huge drawdown eliminator In MY opinion...
00:01:06 {NickTrader} k im done... time for zzzzzzzzzs
00:01:08 {Lonka} yeah thanks nick...good info
00:01:14 {NickTrader} yw 00:01:26 {Nicker} NickTrader your teaching gift
tonight is very much appreciated..it will be used (tonight) tomorrow &
thereafter........ 00:01:41 {NickTrader} great....
00:01:53 {NickTrader} cya'll at open ...
00:01:55 {Nicker} night
00:02:00 {NickTrader} night
00:02:00 {Lonka} nite nickt
00:03:44 {DaveTrdr} night nickt thanks


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