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Pictured here is the Vegas Trade (courtesy Woodie's CCI Club). Notice the hook from extreme (HFE) at below -200 on the CCI, followed by a rounding pattern that is similar to a "cup and handle" price pattern. The number of bars in the handle must be equal 3 or more and less than 10 and (for my nuance) the number of bars in the handle must be less than the number of bars in the cup or the pattern is invalid. Notice the positive divergence between the CCI and price. The Vegas Trade is a trend reversal pattern that indicates a changing of the guard between the bulls and the bears. The entry is on a break of the horizontal trend line (HTLB), shown here in blue, at about -64 on the CCI. The entry is on a CCI cross of the blue Horizontal Trend line (HTL). [1/21/05] Note in this example 3 things specific to my nuance for a high-quality VT: 1) There are about half as many bars in the "handle" as in the "cup" 2) The height of the handle is somewhere between 1/3 and 1/2 the height of the cup. 3) The CCI gave a deep penetration of the -200 line and the handle formed at the -100 line, a very nice VT setup. (updated 5/10/05) Please remember to use stops. As with any strategy, a sudden shift in market sentiment, such as a news event, can foul even the most perfect setup. "Expect the unexpected" and be prepared for losses, even when presented with the most picture-perfect setup.
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Disclaimer:
THERE IS EQUAL OR GREATER POTENTIAL FOR LOSS WHILE USING THIS
STRATEGY. All information, graphs and depictions represented in
this site are OPINIONS and HYPOTHETICAL PERFORMANCE RESULTS and
should be recognized as such and are not solicitations or instructions
to execute orders. You shall be responsible for any decision to
purchase and/or sell any of the futures products depicted herein.
Although, the information herein demonstrates the potential for
profitable trades, the potential for loss is just as equal due
to unforeseen circumstances and changing market conditions. You
must also realize that the indicators and strategies may not work
in the future and can be used to your detriment. The amount of
profit demonstrated in my trades may be entirely different than
yours even if the trades were entered and exited at the same time.
Differences in commissions, fees, and internet connectivity can
drastically alter your performance in comparison to what is depicted
in the charts and could possibly result in a loss. |
