Tampa: just clarify what do you mean by "double ema". It can mean you apply ema twice or you correct one ema with another ema, I think you mean the later one.
Usually I don't tell unless in very closed circle. In most cases, after people know what I am doing, they ask me the opinion abount current market, I tell the truth which is "I don't know", but they don't believe, they think I hold something back.
One more rule: unless you truly believe an indicator, otherwise take it from your indicator list. Only work with what you truly believe, this avoid second-guesses.
It sounds like you got a very sophisticated, but scientific model. My question is: is it neccesaary to go so far for profitable trading? I simply understand one of the key factor for profitable trading is the interaction among different time frames. Also I simply use water wave as my metaphor...
My experince with the up-to-date mathematical methods (anything you number it from artifical intelligence to nonlinear dynamics) is that it is not worth of time for individual investors.
The market is too complicated, it takes a vast energy for a develop and time for a computer to find good...
I look at 3 aspects of CCI:
1. Hook from extreme: trend too strong, so going to pause;
2. Regular divergence: trend too weak, so going to pause;
3. Direction of smoothed CCI: serves as a confirmation of the trend.
1. Use CCI as an entry tool: enter when there is a divergence with the trend;
2. Don't use regular divergence as an indication of trend reversal;
In all, the key to use CCI properly is to know the TREND first. Woodie uses time as a factor to define the trend (5 or 6 bar crossing...
Divergence is not a magic out of no-where, it is a pattern of price action.
1. When will a divergence occur?
There is a regular divergence for a drift with trend;
There is a reverse divergence for a drift against trend;
and even more:
<b>Any</b> regular divergence must be a drift...
For me, divergence is only one of three warning signs that a trend may pause along with other two: price climax and volume spike.
I usually spot divergence from price charts, not from indicators. A divergence occures when the last 2 consecutive pivots travels shorter distance or with much...