Trading Woodies CCI System by Jeff firstname.lastname@example.org Copyright © 2004 Jeff Gannon
The snapshot above
is a complete set of charts that are used to trade Woodies CCI system. There are
four different markets and only one time frame for each market.
We are showing the
YM and the ZB on a 5 min chart, and also the ER and the EUR currency futures on
a 3-minute chart. We donít change symbols or time frames during our trading
day in Woodies CCI system. Absolutely everything we need is right there on that
set of charts to trade 4 markets. In fact if we only want to trade a single
market then we only need one of those charts. We look at nothing else at all.
Notice a few things
about these trading charts. Clean. Simple. No Prices. And the CCI patterns are
the only thing that jumps out at you. Everything else fades away into the
background. No Distractions. This is very important to successful trading. You
have to have the CCI pattern stand out like its 3-D. You have to be able to see
only it from across the room. Fade all other things into the background. We only
focus on the pattern.
Notice another thing
about the charts. 1 chart with 1 market with 1 time frame. Simple.
Woodie only uses two
CCI indicators to trade with. One
is the CCI 14 period, shown as black, and called CCI. The other one is the CCI 6
period, shown as red, and called Turbo CCI or TCCI. The CCI formula uses the (H
+ L + C) / 3 calculation and has a multiplier of 0.015.
Woodie himself may
have price bars, Woodies pivots and even the 34-ema showing on the charts he
pushes to the room in real-time. But he does NOT use them to trade with. So you
Do not put
additional things mentioned above on your charts at all. They all work to some
degree. But do not add any of them. They are not needed. If Woodie doesnít use
them to take trades then why should you?
Woodie only looks at
one chart for each market he trades. He does not look at different time frames
for confirmation. Each chart has only one time frame on it. Mostly he uses a
3-minute, 5-minute or a tick chart of some set number such as 33, 89 or 133
tick. Ask the room what Woodie uses as a time frame for a given market. Use that
only and do not change it. Follow what Woodie does.
Woodies charts are
set to display data for the normal market hours only. He does not use pre and
post market data on his charts to trade with. This will change the CCI patterns
at the beginning of the market if you do not use the same data display hours.
Make one single chart with one single time frame for each market he trades.
Set the data display time frame for each chart. For example most markets
will be from 9:30 am to 16:15 pm EST. The bonds will be from 8:20 am until 5:00
pm est. Currency futures like the Euro and Yen are set to 24 hours.
Woodie does not
change charts around, add things, subtract things or change time frames at all.
He keeps them the same all the time. He does not switch time frames to see
different patterns. He doesnít use larger time frames or smaller to confirm
his CCI patterns, entry or exit signals. You should not do this either.
Set up your charts
with exactly what Woodie uses to trade with. Do not modify them in any way. All
you need to put on your charts is the CCI indicators set to 14 period and 6
period CCI. Set the background colors so that it is not standing out. Set the
text size and color and any other items on the screen so that they do not stand
Make the two CCI
indicators stand out as much as possible. Make them thick. These are the only
things we want to have pop out at us when we are trading. No other information
is important. If something other than the CCI pattern itself is standing out
then you will focus on it and it will degrade your reaction time.
that you are making trades based on one single chart with one single time frame.
If that chart is a 3-minute chart then you canít expect to stay in very long.
We are daytrading. We move fast. It doesnít matter if the prices keep moving
and we could make more profit. You have to follow the system and do not
second-guess it at all. Woodies CCI takes plenty of profit out of the market
each and every day.
All you are supposed to do all day long is wait for a Woodie CCI pattern to scroll by. It should be boring. Good trading is defined as boring. Get over it. We wait for a CCI entry signal. We enter the trade. We wait for a CCI exit signal. We exit the trade. It is simple, well defined, very clear and works very well.
Notice the 2 count
down timers on the charts above. They are the small almost square blocks. They
show the time that is left before the CCI bar will print and create a new CCI
bar. These can be used to time your entries. You will learn more about this
New people love to
add things to their charts because they do not know what else to do. Donít do
this. Once you add the CCI signals to your charts and remove prices you are
done! Woodie doesnít use price bars to trade and you do not need them either.
If you are new to Woodies CCI, now, and I do mean right now, is the best time to
Do not make excuses about how you canít trade without it and your other indicators or how you are learning to not need them. You are wasting your time. You canít afford to trade with these things any longer. It increases the learning curve dramatically. It would be like learning to use a cane for walking in outer space. It will keep you from focusing on the task at hand. Donít add anything else to your charts. Only use what Woodie uses.
1 Chart Above Ė Woodies CCI Trades Showing Price Bars.
In the chart above you will see 4 Woodie CCI trades taken. The single yellow lines are trade entries and the double yellow lines are trade exits. Blue lines were used to outline the CCI trade pattern.
There were several other trades there as well. However, only 4 were shown. Those taken were a TLB short, a TLB short, a Ghost short and a TLB long. We take trades without looking at price bars. So should you. You will not do well if you look at price bars. Your performance will suffer because you are using them. You cannot learn Woodies CCI system while watching prices. The excuse that you still need them is absolutely wrong.
Of the 4 trades shown you can see that the first 2 TLB trades, from left to right, made very nice profits, and the next two trades, the Ghost and the TLB, made a very small profit and the other one a very small loss or b/e at best. Woodies CCI system controls your losses and lets your winners run.
It is very important to notice that Woodies CCI system will most often get you in 1 or more bars before the rest of the world. This is your edge! The pinkish purple lines drawn on price show you where people
might enter the 4 trades based on the break of price bar trend lines. Each and every single price bar trend line break entry shown is 1 or more bars later then Woodies CCI entry. That costs you smaller profits, larger losses and sometimes can even turn out to be a disaster!
Notice the Ghost entry we took didnít go far on this particular trade but we still snagged a very small profit. But the price bar trend line method put you short and the market turned on you immediately after that for a nasty loss because you probably wouldnít exit until it broke the upside of that range. With Woodies CCI we exited with a small profit within the range because we got the CCI entry and exit signals right on time. This is a perfect example of how Woodies CCI system is protecting you, giving you small losses and large profits automatically.
The chart above shows prices to help you see that Woodies CCI trade patterns can be taken regardless of whether prices are watched or not. If we remove the section showing price bars wonít we see the exact same CCI entry and exit signals? The answer is YES! So this should show you that you donít need price bars to take the trades in Woodies CCI system. And since you donít need price bars and watching them creates stress and emotions while trading then why on earth show them on your charts while learning Woodies CCI system? The excuse that you need them while learning is ridiculous. Woodies CCI system doesnít use them.
costs while keeping it simple is very important when trading. You can use Sierra
Charts www.sierrachart.com for charts
at only $80 a year, Interactive Brokers www.InteractiveBrokers.com
for both a free data feed and also as a universal trading account from which you
can trade anything under the sun. You can find various free count down timers to
time your trade entry at www.woodiescciclub.com.
Woodie uses Sierra Charts, IB and the countdown timers with excellent success
and so can you.
tools are very inexpensive, work perfect and are widely used to trade Woodies
CCI system. This is because it is a very simple system, uses very few indicators
and doesnít require the need for historical data. Get over your need to have
fancy chart features, historical data and expensive tools. They are just not
needed any longer. Save your money. This is one of the many wonderful benefits
of trading Woodies CCI. While learning the system they are a completely viable
low cost option.