Commodity channel index

== Commodity Channel Index (CCI) ==

Developed by Donald Lambert and published in the October 1980 issue of Commodities (now known as Futures) Magazine, the Commodity Channel index (CCI) is an oscillator technique that determines cyclical turns. It signals when a financial asset is overbought and when it is oversold.

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Ken Wood’s method to learn how to trade using simple patterns drawn on the CCI Indicator

This is a method called "Woodies CCI". Referred to as (WCCI) from here on. This method of trading with the CCI indicator developed by Donald Lambert used by Ken Wood (woodie) and others is referred to as WCCI. The indicator itself is the heart of Woodies system, but the SOUL of the system is the interpretation of the patterns and nuances that it paints. It is no different in that regard to any other indicator or method. I could tell you to put a 8 ema on your chart and trade it, but if you don't know how to use it , it is just a line on a chart. The WCCI METHOD as taught by Woodie is a better description of what the room is all about. You cannot pop into the room and take a quick glance at a chart and make any reasonable assumptions with such limited observations.

Woodie has distilled a method to learn how t trade down to its most distilled, unencumbered essential elements. The WCCI patterns are there in every move the market makes. Learning the system and more importantly learning where YOU fit into the system can only happen if one is willing to devote screen time. I would say 3-6 months of intensive education is mandatory before one could possibly say he is proficient in understanding the nuances of what WCCI method offers.

The room is large and sometimes noisy. The moderators are all volunteers and receive no remuneration. Their insights are a broad overview in some cases and a more focused approach in others. A lot of time is spent in discussing the most critical aspect of trading, and that is the trader’s psychology as it relates to entry, exits, money management, etc. Every single trader will have different views and beliefs and the WCCI method does not remove that fact. You need to decide how you fit into the method. There are intraday swing traders in there and there are some microscalpers, so there is no one uniform standard.

The WCCI Method is an onion. You need to peel back the layers one by one in order to appreciate it. The approach, is best demonstrated and executed by Nicktrader. If you truly want to see how the system is executed to its full potential, watch him closely. He is incredibly forthcoming with his posts for entries and exits, uses the most elemental form of the CCI Method on his charts and in my opinion personifies what Woodies CCI is all about.

As in all things in life, nothing comes easy, and Woodies CCI is no different. The successful traders using it will tell you that it will take 6 months to a year to really start seeing and feeling the patterns and the signals.

The Story of Woodies CCI

When Ken Wood first started teaching newcomers to trade for free online back in April 2002. There were 10 to 20 people trading with him then. Now, things have changed. Presently, it takes 10 Hotcomm rooms to accommodate all the traders desiring to listen to and learn from Ken Wood everyday. (+1000 traders learning WCCI together)

Ken Wood is a great example of a successful trader sharing his time and knowledge with others.

Ken Wood has been at the trading game longer than most, that equates to lots of screen time=experience. He has found that WCCI is all he needs to trade successfully. But there is really much more. Ken Wood has mastered patience, allowing the trade come to him. His years of screen time have taught him the nuances of the WCCI. Ken Wood uses sound money management techniques, master of money management and lives by " there are better trades down the road and I guarantee it", knowing that if you follow a plan you end up in the profit column and Ken Wood does almost everyday = master of consistency.

Ken Wood s room has attracted both newbies and experienced traders. Many I know tune in and lurk in background just to hear when Ken Wood puts a trade on depending on him to find those other hard to find divergences.

Ken Wood s chat room style is positive, calm, predictable and educational. If you spend enough time there you will see what Ken Wood sees. You will anticipate him announcing he entries.

Ken Wood s chat room is the place to learn CCI. The forum found at woodiescciclub.com/forum carry many threads filled with postings on how to trade with the CCI indicator ala Ken Wood. A prime example of traders helping traders.

Additionally, Ken Wood has created a family atmosphere, pre and post market, for sharing, learning and relaxing and learning about one another. Ken Wood has travelled all over the world including London, England and most recently the CME and CBOT, meeting with chat room participants.

More info at http://www.woodiescciclub.com

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List of Articles where you can find more info on Ken Wood’s CCI

The Woodman Tradeth...And the CCI Emergeth by: Gail Osten May 2005 Feature Interview with Ken Wood. Trader, Founder of Woodie's CCI Room

SFO ( Stocks Futures and Options ) Magazine http://www.sfomag.com

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The CCI Ghost By: Ken Wood May 2004-61

A well-known chart pattern gets put to a new use when applied to a little-used indicator, resulting in trade setups that jump out when you least expect them.

Active Traders Magazine. The monthly magazine for active traders and investors http://www.activetradermag.com

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Exploring the Trader's Chatroom By: Staff Writer, Investing-News.Com Nov 6, 2004, 19:05

Investing-News.Com http://www.investing-news.com/artman/publish/article_53.shtml

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Trading Forex with Woodies CCI. What Is Woodies CCI? FOREXHEAVEN http://www.forexheaven.com/woodies-cci.html

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Using the Commodity Channel Index (CCI) to Trade Gold & Silver Futures Ken Wood presentation at The Chicago Board of Trade

The Chicago Board of Trade (CBOT) http://www.cbot.com/cbot/pub/cont_detail/0,3206,1058+27093,00.html