Woodies CCI Club Trading Seminar

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Woodies CCI Club Trading Seminar

• Trade the Damn Patterns
• We dont need no stinking price bars
• Ken Wood (Woodie)

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What is CCI?

• CCI was developed by Don Lambpert
• CCI is a momentum indicator that Woodie claims to
  be a leading indicator and often leads price
• This is true for most oscillating type
  indicators.
• However it does not mean it is a price predictor.
• It merely implies that it gives a meaningful
  picture of what is happening behind the curtains
• It give a pretty good picture as to where the
  momentum is headed and if it dying out.
• For example many times the price of the stock
  will rise and the CCI will begin to fall
  indicating that momentum to the upside may be
  dying out.

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CCI Equation
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CCI Equation (cont)

• AP Average Price (HLC/3)
• MA Moving Average
• MD Mean Deviation
• Find the deviation between the MA and AP and get
  the absolute value
• 0.015 Hack
• The idea of the CCI is to have the 1 SD within
  the 100 lines and 2 SD within the 200 lines

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Woodie BasicsTime Periods

• CCI 14
• For time periods less than 60 minutes
• CCI 20
• For time periods of 60 minutes or greater
• Including Weekly
• These are the time frames that have the most
  meaning full data. Meaning you get a pretty good
  distribution of CCI within the 100 and 200 lines.

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Woodie Basics (cont.)

• A trend is defined when you have 6 or more bars
  above or below the zero line
• 6 bars above the zero line is an uptrend
• 6 bars below the zero line is a down trend
• No need to look at price action to determine if a
  trend has been established
• 100 line is minor support/resistance
• 200 line is major support/resistance

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Types of Patterns

• Trend Continuation
• Zero Line Reject
• Tony Trade
• Trend Line Break
• Trend Changing
• Famir
• Vegas Trade
• Ghost Trade
• Mittens Ghost

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Traders Coach

• Dr. Janice Dorn, M.D., Ph.D. Financial
  Neurobehaviorist
• A trader must be
• Compassionate
• Humble
• Caring
• And have a Killer Instinct
• Trading is 100 Neural Psychological

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Trading Traps

• Failure to take responsibility for your trades
  and investments
• Falure to master your emotions
• Failure to keep studying and learning
• Failure to learn patience
• Failure to do what must be done
• Failure to TRULY, MADLY, DEEPLY, BELIEVE IN
  YOURSELF

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Tax Guy

• Jim Crimmins
• President Traders Accounting
• Very good presentation
• Went over the different types of trader status
• Investors vs. Traders in Securities
• Went over some court cases

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Mark to Market

• Write off all losses against earned income
• Cannot take advantage of 1256 contracts
• Must make this election before April 15 of
  current tax year
• Basically only good if you plan on losing money

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Entity structuring

• Go over on board

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Four Questions for you Tax Preparer

• What is a wash sale?
• What is Mark to Market?
• How are broad based indexes taxed?
• How many active trading clients to you have?

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CCI 100 Line Interaction

• Many times momentum slows before making a
  decision of which way to go
• Good Trade confirmation
• When many touches of the 100 line then it acts as
  significant support/resistance
• Like taking signals when hooking from extreme
  meaning the 200 line

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Range Bars

• Also referred to as break out bars
• Difficult concept to grasp at first
• Based on range of ticks
• i.e. 15 tick range bar is a bar that has a
  maximum of 15 ticks per bar. All bar sizes are
  the same
• Woodie did some testing with this and found that
  signals were triggering earlier using this and
  the normal 5 minute bar he uses
• This give each bar a homogenous feel so there is
  less noise

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CCI on the Daily Charts

• One of the moderators uses the daily CCI and has
  pretty good success
• All patterns are the same and all trades are
  taken off the CCI triggers
• For daily charts he does use price bars
• Has a webinar every Friday after market and
  recaps what has happened over the week and
  potential setups for the following week

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CCI on Daily

• Big proponent of only using a hanful of the
  stocks.
• His watchlist is about 25 stocks
• High volume, moderate to high priced
• Trades options on the stocks
• Doesnt worry about the greeks only the delta.
• Some very good insight

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Other daily indicators

• Use CCI 20
• Use 34 EMA and the angle of trajectory
• Use Woodies Pivots (similar to regualr pivot
  points)
• Uses options rather than stock
• Focus on High Quality stocks
• 5 core stocks that move almost every day
• Can we think of any?

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A Simple Plan

• Trade 5 stocks with CCI Patterns
• Trade 3 contracts each for a total of 15
  contracts
• 1.00 target 1,500
• 2.00 target 3,000
• Many times achieved in a week

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Auto Trader

• They have been developing a automated trading
  system
• Two charting packages have done this and they are
  only available to Woodies CCI and PFG members
• They recognize patterns and take trades based on
  the parameters
• One platform TradeNavigator has a logger and
  switcher all integrated into their platform.

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CCI Support System

• Tremendous Support
• www.woodiescciclub.com
• Woodiepedia CCI Trading University
• Bulletin Board
• Monday Friday during trading hours live
  moderators in chat rooms with audio and video
  going over potential setups
• After market
• Tick Replays 2 times a week
• Newbie Nights
• Every Friday after market Daily Charts using CCI

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Support System

• Lots of online resources
• Spreadsheets and pattern scanners available
• TradeLogger.net
• Always something new coming along
• All done by people who trade the CCI and all
  Free.
• Whenever Woodie charges for something it is
  either at cost or the profits go to Charity.