Cheers Grey1
Glenn
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leovirgo said:
Hi LeoVirgo
There is a thread on this here: -
www.trade2win.com/boards/showthread.php?t=20659
Glenn
leovirgo said:
Leovirgo,
The best MACCI settings I have from Gray1's thread in TW2's BB is included in the following TW2 Link, Titled: Gray1's approach to trading US stocks" See Gray1's Post # 123:
http://www.trade2win.com/boards/showthread.php?t=20089&page=13&pp=10
Quote: "CCI 20 (default) smoothed over 6MA.
Hope this helps!
leovirgo
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Nastrader said:
Hi Nastrader
Thanks for pointing me the thread. Yes, I've seen that and compiled almost all of Grey1's posts in to a word document. I just wanted to discuss if we could use multiple MACCI settings in different market environments. Please see the attachment, it's all there except specific entry criteria for trending days.
regards,..
Will this help for a trending day? I don't think Grey1 has posted an exact entry technique, more of a skeleton on which we build on. Also the exhaustion engine should be checked to see if there is no OB signal on market/stock before going long.
These are the rules of engagement in a VWAP trade..
Market is strong with DOW open + 50..
1) We don’t pair trade when market is strong .. We only take a directional trade
2) We only go long ..
3) We go long when price approaches Lower band
4) We fine tune with MACCI ( MACCI is slowed down version of CCI and eliminates much noise those with TS please PM me for the code ).. MACCI is a secondary tool
5) Further fine tuning with L2.. Make sure there is not a series of bidders sitting much further than your entry
6) Deduct the lower VWAP price from the VWAP and make sure there is enough meat in the trade.. For example if the VWAP is 30 $ and lower VWAP is only 29.80 then your max gain will be 20C.. is this what you want ? .. Make sure your possible reward ( the max gain ) is much greater than your risk ( stop loss). No point to get only 20C from a trade if you only trading 100 shares..
Reverse above for short position .. Short ONLY from the upper band VWAP when market is – 50 .
These are the rules of engagement in a VWAP trade..
Market is strong with DOW open + 50..
1) We don’t pair trade when market is strong .. We only take a directional trade
2) We only go long ..
3) We go long when price approaches Lower band
4) We fine tune with MACCI ( MACCI is slowed down version of CCI and eliminates much noise those with TS please PM me for the code ).. MACCI is a secondary tool
5) Further fine tuning with L2.. Make sure there is not a series of bidders sitting much further than your entry
6) Deduct the lower VWAP price from the VWAP and make sure there is enough meat in the trade.. For example if the VWAP is 30 $ and lower VWAP is only 29.80 then your max gain will be 20C.. is this what you want ? .. Make sure your possible reward ( the max gain ) is much greater than your risk ( stop loss). No point to get only 20C from a trade if you only trading 100 shares..
Reverse above for short position .. Short ONLY from the upper band VWAP when market is – 50 .
leovirgo
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DiscoPete said:
Have you really managed to trade a strong stock from lower MPD line?
On a trending day, strong stocks rarely come back to lower MPD line. They either touch base at VWAP or just below and then shoot up, hiting the upper MPDband making new highs all the way.
One exception is when they gap down at open, due to MM accommodating a larger order. In this case, this stock will have weak relative strength until it comes back above open.
Ok, I will demonstrate my point. Ebay was up more than 6% yesterday. Where is the technical/vwap entry? ( note, it never was OS in 5min, OB all the time.. that's why the trend is in place lol.. )
Attachments
No! I was just posting what grey1 posted a while back and I can remember grey1 saying that in trending days apply your own trend following system. A simple one would be if market is strong and a sector is outperforming the market then long the stock out performing that sector.
My 2C worth.....
I was reading somewhere-' a trader must have different tools for the different market conditions that he/she is faced with' Keeping that in view, I shortlist a few shares every night for the purpose of a breakout strategy; if the day turns out to be a trending day then I make an entry based on the b/out rule (if the price does not come down till the lower band for the long entry);
As the market spends a longer time in consolidation than trending, the VWAP entries come in handy for these times.
The most difficult scenario I find is when the market starts off the day in consolidation but midway switches over to the trending mode. This has caught me out many times.
I was reading somewhere-' a trader must have different tools for the different market conditions that he/she is faced with' Keeping that in view, I shortlist a few shares every night for the purpose of a breakout strategy; if the day turns out to be a trending day then I make an entry based on the b/out rule (if the price does not come down till the lower band for the long entry);
As the market spends a longer time in consolidation than trending, the VWAP entries come in handy for these times.
The most difficult scenario I find is when the market starts off the day in consolidation but midway switches over to the trending mode. This has caught me out many times.
Thanks leo, got a question, what was the dow doing when ebay went up 5%? Didn't have TS running so i don't know but if I was playing it I would either wait unitl dow is OS then long ebay (as per strat 3) or if dow was never OS then go long a stock that is outperforming sector. Interesting to note that when volume levels fall in ebay chart posted above, the stock goes into consolidation. Grey1 recommends going into cash when consolidation takes place.
