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TFC Commodity Trading Forum

Re: June S&P/ Bumping 1380 Resistance/S.Bear

Well rather than using the CCI 20 minus -100 level and +100 level that is standard I draw dashed lines at the -200 and +200 level as an extreme oversold and extreme overbought level. Tagging the -200 level doesn't always mean that is the price low but very often is. What can and often does happen is a price bounce and then a lower price low with a higher CCI 20 reading.(pos diverg) That is about as close to the holy grail I've come to using oscillators or other indicators that suggest a low other than actual price support points. But if a person didn't mind accepting drawdowns just tagging the -200 level will tell you that a price low is either in or very close by in 'time' "most of the time." There are times price will continue to plunge. The CCI 20 is not a banded indicator like most that go from 0 to 100. It can go to 300 or 400 or more which shows even more extreme overbought oversold. When you see this indicator clear +200 it is a definate warning of over exuberance. But price can pull back a little and then run to a higher high with a lower CCI 20 reading (neg diverg) which warns you to exit. Check out a bunch of chart with it to see this. If I wasn't such a fussy s.o.b. I'd just use this indicator on most positions and do just great other than short term drawdowns briefly. If you see -200 at a price support area or +200 resistance area you really have a high odds trade. But heyyyyyyyyyyyyy, that would be wayyyyyyyyyyyy too easy. If I can't do it the hard way I wont do it at all. It's called perfectionism. Man's worst enemy. There should be medication for it as it is one of the worst traits to have in life. Like my 101 pt questionnaire for dating,lol..................Maybe I should start drinking or doing drugs to shake it....................I'm just too XXXXXXX serious.