Retracements are fun to work with when the stock moves in a direction with higher time frame as CCI >100, but on the lower time frame CCI fizzles out to <100
Thumb Rule
1) CCI8 (<-100)
2) CCI34 45-60 ( Buy Hold) or more is an approximation
3) HTF >100 (W and M).
1) and 3) are must,
2) can vary here and there
For Intraday
CCI(8) 5m | CCI(34) 30m | CCI(34) 5m | Description |
>+100 | >+100 | >+175 | Extreme Bullish / Flat Retracement |
>-100 | >+100 | >0 | Bullish |
<-100 | >+100 | <-100 | Wave with Amplitude |
The same conditions can be extended to other timeframes as well example:
CCI(8) D | CCI(34) HTF (W/M) |
CCI(34) D | Description |
>+100 | >+100 | >+175 | Extreme Bullish / Flat Retracement |
>-100 | >+100 | >0 | Bullish |
<-100 | >+100 | <-100 | Wave with Amplitude |
Summary
How to differentiate if its a Retracement?
When CCI 8<-100 but price abv ORB High n when CCI8>+100 price abv prev high!
Note the Close >EMA34
Positional Setup
Imagine it to be a short circuit, the 3 EMA must not touch, but come close enough to start a new trend during CCI 8/34 conditions, here the green candle at the end comes to the rescue.
Short circuit happened (w.r.t. the 3 EMA as they crossed each other) and retracement never happened in #ADANIPORTS
Around 170-150 can be next retracement picks based on my interpretation
Intraday Setup
Rule
1) At the time of breakout if CCI 8 5M >+175, donot enter and wait for retracements
2) Don't believe in waiting been Stopped Out. 2 consecutive near full body fall candles enough to exit on retracement.
3) Rule is to wait for retracement unless it is cross over abv prev day high! Then bet next 1/4th
BPCL .. was a Classical Retracement Buy at the early hours of the open session .. a case study ...Notes Day Trading
Another classic retracement on #HUBTOWN
'Near' Classic Retracement observed on Apollotyres
ONGC ..a case of retracement buy in a open range breakout stock for the day
Completes retracement
Retracement confirmed
Retracement complete
Retracement complete
Nifty .. about to complete retracement ... nxt 3 candles will confirm this
Retracement from Fibo Support with Spinning top, now forming higher lows
Immediate Buying of course is never to be done. We have Entry Exit rules based on CCI 8 Daily >+175 for Sell and < -175 for Buy! This can mean Buying in desirable Price Range. For CCI 8 Weekly >+135 or <-135.
Note: CCI(Monthly) must be >100 as in this case of TVS Electronics as depicted
CCI8(D) < -175
CCI8(W) < -135
Buying when CCI34(Monthly) >100
Refer M (Orange) (1) W(Yellow)(2)&(3)&(4) D(Blue)(5)&(6)&(7) markings.
Observations:
Monthly Chart
Weekly Chart
Daily Chart
CCI(W) crossing below 100 gives sideway action unless restored by fresh momentum
Support from EMA Analysis
Many a times the support from an EMA can be a critical factor for investment.
Factor: