TRADING 06 SYSTEMS

[TREND1]

CCI 10 CORRECTION

When the trading bias is bullish and daily CCI moves below -100, a surge back into positive territory signals a reversal of the pullback. This indicates that the bigger uptrend is also resuming.

When the trading bias is bearish and daily CCI moves above +100, a plunge into negative territory signals a reversal of the bounce. This indicates that the bigger downtrend is resuming.

The general idea is to trade in the direction of the major trend.

Initiating position after a correction improves the risk-reward ratio.

Trading bias is determined by looking at
http://investorshub.advfn.com/TRADING-BULL-OR-BEAR-MARKETS-32409/


HUSRT CYCLE is 10.8 days so I use CCI 10
The Profit Magic of Stock Transaction Timing, by J.M. Hurst (Copyright 1970).
Despite the horrendous title, the book is exceptionally logical in its explanation of market cycles and how to identify them.