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Strategies & Market Trends : Playing the QQQQ with Terry and friends. -- Ignore unavailable to you. Want to Upgrade?

To: Walkingshadow who wrote (1020)	6/27/2005 12:41:41 PM
From: herry iball	Read Replies (1) \| Respond to of 4814

strolling shadow.... as promised, here is some info on what I've posted before. I tend to use Renko charts for much of my trading. Renko charts are based on defined price movement....meaning that if you set the box size of a QQQQ chart to .05 on a 30 minute chart, then at the end of each 30 minute bar, there will be one box drawn for every .05 that the Q's moved. That is, if the Q's moved .20 in that last 30 minutes, there will be 4 boxes drawn. So for YM, I use a 2 point box for scalping, and a 10 point box for daily charts. For NDX options, I use a 3 point box on a daily chart. For ES (SPX Futures) I use a 2.5 box. The indicators are calculated off those boxes rather than the candle charts. Therefore, Renko charts tend to remove all the 'chop' in sideways markets, and the indicators don't get jiggy due to the chop. The trick is to play around with the charts and settings until you get the proper box setting for whatever you are trading and the time fram you're trading. When I used to scalp MSFT, I had the box set to .05, then when it split, I changed the box size to .03 Here's a screen shot of the YM (Dow Futures) in candle format share.esignal.com and here is the same time frame of the chart in Renko Format share.esignal.com Trading is done off a few rules, such as Enter on zero line crossing, exit on first hook in opposite direction.....when indicator is repelled by zero line then trend is intact and take trade in that direction and exit on first hook. Trendlines are drawn on the indicators, and play a part as well as price/indicator divergences. I use CCI(14) and something called WOMO ((open-close)/period) smoothed using Least Squares Method, and SAR (.02, 02, .1). share.esignal.com I don't use Renko exclusively....here is a QQQQ daily chart with CCI and WOMO, you can see how just a few rules, such as the trendline breaks and zero line repel can help in decision making. share.esignal.com For a full DOCUMENT of trading off of CCI patterns, I would highly recommend Woodies CCI Trading Document (totally free, downloadable document, and charts for Sierra, Esignal, etc.) I've incorporated many of his ideas in my trading, and the Forums on the website have a gazillion (no really..) examples and charts of traders posting their charts and patterns and different ideas. Well worth exploring. Screen shot of Woodie's trading Chart (used in Esignal) share.esignal.com Woodies website and forum. woodiescciclub.com Hope this answers some of the questions I've gotten via pm's