AI
Wednesday, October 18, 2006 4:45:14 PM
But what is the right side of those intervals? Here is the thing that bothers me, let me use today as an example.
ER was above the +100, then broke it, so I am short. Then it breached the zero line slightly, on the 144 CCI 5 min chart, but then bounced back up above the zero line. So am I still short? Or do I get long because it broke the zero line, then went back up above it? Isn't that a long trigger?
Let's say it got near the zero line without breaking it and bounced up -- then I am still short from the original break of the +100? That is what happened to YM today. On the sell off in the morning, it never broke the zero line, but instead bounced off it. So you would still be short the YM from the original break of the +100, but it was the stronger index and never broke the zero line. But ER which was weak enough to break the zero line, then you get long because it bounced back above the zero line. So you end up still short the stronger index (YM) but long the weaker one (ER).
This is where I get confused about what to do when a key interval (zero line, 100 line) will not break, but instead the CCI bounces off of it (or away from it) like a zero line reject. I am inclined to reverse when that happens. Like I said about yesterday, you held the QQQQ long, even though after bouncing above the -100 from below it, it could not break above the zero line even after a long time. That indicates weakness, yet the rules say you stay long unless it breaks back below the -100.
This is the paradox. This is why I like to use the sling shots, to get me out of these trades and reverse when a key interval will not break.
Look at today's ER. How would you play this? Short in the morning, that was clear. But then bounce off the zero line. (The 15 min chart does not show the slight breach of the zero line and then the bounce back above it.) Stay short? Or go long? It does not make sense to stay short when it bounces off the zero line. It makes sense to go long. Then a move up, but it cannot break the +100. Stay long because we are above the zero line? Or short on the hook down of the 48 CCI at price resistance, because it is too weak to break the +100? I am inclined to go back short there, as it is too weak to break the +100. If the move up had been stronger, the 48 CCI would have broken the +100, then I could short on a break back down. So you are shorting when it is strong, and staying long when it is weak?
ER was above the +100, then broke it, so I am short. Then it breached the zero line slightly, on the 144 CCI 5 min chart, but then bounced back up above the zero line. So am I still short? Or do I get long because it broke the zero line, then went back up above it? Isn't that a long trigger?
Let's say it got near the zero line without breaking it and bounced up -- then I am still short from the original break of the +100? That is what happened to YM today. On the sell off in the morning, it never broke the zero line, but instead bounced off it. So you would still be short the YM from the original break of the +100, but it was the stronger index and never broke the zero line. But ER which was weak enough to break the zero line, then you get long because it bounced back above the zero line. So you end up still short the stronger index (YM) but long the weaker one (ER).
This is where I get confused about what to do when a key interval (zero line, 100 line) will not break, but instead the CCI bounces off of it (or away from it) like a zero line reject. I am inclined to reverse when that happens. Like I said about yesterday, you held the QQQQ long, even though after bouncing above the -100 from below it, it could not break above the zero line even after a long time. That indicates weakness, yet the rules say you stay long unless it breaks back below the -100.
This is the paradox. This is why I like to use the sling shots, to get me out of these trades and reverse when a key interval will not break.
Look at today's ER. How would you play this? Short in the morning, that was clear. But then bounce off the zero line. (The 15 min chart does not show the slight breach of the zero line and then the bounce back above it.) Stay short? Or go long? It does not make sense to stay short when it bounces off the zero line. It makes sense to go long. Then a move up, but it cannot break the +100. Stay long because we are above the zero line? Or short on the hook down of the 48 CCI at price resistance, because it is too weak to break the +100? I am inclined to go back short there, as it is too weak to break the +100. If the move up had been stronger, the 48 CCI would have broken the +100, then I could short on a break back down. So you are shorting when it is strong, and staying long when it is weak?
There never was a moment, and never will be, when we are without the power to alter our destiny. This second, we can turn the tables on Resistance. This second, we can sit down and do our work.
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