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Strategies & Market Trends : Metastock 6.0 for Window -- Ignore unavailable to you. Want to Upgrade?

To: David R. Evans who wrote (1892)	4/8/1998 1:54:00 PM
From: TechTrader42	Read Replies (2) \| Respond to of 4056

One sell signal I use is when CCI(13) falls back below 200. CCI is often one of the first indicators to give a sell signal, and it worked well with PSIX recently, for example. But CCI often gives signals too soon, as in the case of FFTI recently. It's best to look for confirmation from a shorter-term MACD turning down or crossing the signal line, or from StochRSI(8,5) crossing back under 80 or 70. I also use CCI as a caution signal when it's over 200. IR is an example. It'll probably still move up, but I don't think it was the best time to buy when CCI was over 200 -- even more, when it was over 300. Price did fall back after CCI reached that level. However, Bill Sandusky has pointed out that it's the direction of CCI that counts, not its value, and price often continues up even when CCI is over 200. FFTI is a good example of this. But I find that more often than not, when CCI is over 200, things are starting to get risky. After CCI rises over 200, price will often fall within a two or three days. I've been debating the merits of CCI today while looking at ACSC, which showed up in a breakout scan last night. With the exception of StochRSI(8,5), which is at overbought levels, all the indicators in your system are strong. But CCI is at overbought levels, too, so I held off on buying. Who knows whether that'll turn out to be the right decision. But CCI did prevent me from buying at the high of the day earlier. So what am I saying in all of this dithering, blithering blather? When CCI is over 200, it's a yellow light, a caution signal. I do sometimes proceed with caution here, but not often. Usually I wait. Brooke