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Reading Indicators in Real Time

August 14, 2012

Just one entry today, so I’ve focussed in on the chart to have a look at one of the quirks of using indicators with limit orders. I’ve highlighted the CCI at the time of my short entry – as you can see, it’s not overbought, so why did I sell here? If you look at the corresponding price bar you can see that it closed at its lows.

If you want to get very precise about this then it ought to be possible to use the calculation of the CCI in reverse to determine at what price level it would become overbought or oversold on the next bar. This could then be plotted on the price chart, and then you’d know whether an extreme reading was possible during the next bar, and at what price level. If this was something you were interested in then I imagine that Chris would be able to help – see the TradeStation Indicator Programming Service available here.

This particular trade took a while to work out, and there was a further pullback that threatened my stop-loss before a 2.50 point profit was secured.


Daytrading Strategy 14th August


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