Wednesday, September 21, 2011

Did you miss these sell signals?

1. On Friday the CCI broke above +100 (I believe I mentioned this as being on my radar)
2. The upper EMA envelope lines met (or crossed) - sell signal
3. The MFI projected top time was achieved (top, bottom, projected top)

Maybe you have others you would like to share.

Her is a SPX chart showing these signals and a projection of the downside:

With 3 signals (that I have found to be fairly reliable) occurring together there should have been little doubt as to the market direction.  GL traders - do your own research and share.


  1. Hi Inlet

    Taking advantage you post this chart, I´d like you to ask about tht system you posted some time ago with CCI and MFI. If I´m not wrong you explained as a machanical system, but in my backtest I found many false signals, specially in rallyes as the last part of 2009 and 2010, being more accurate in this sideway market from last year.

    May be you use the strategy in some other way or aren´t you using it and more focused on short term cycles?

    Thanks a lot for your very helpful blog I follw some moths ago

  2. Jekyll - Yes I was proposing that multiple signals might be combined in a way to produce a mechanical system to enter/exit the market.

    It was thinking aloud to stimulate thought by readers on how they might incorporate TA into their analysis and trade decisions.

    I have not developed a totally mechanical trading system using CCI and MFI, but do follow them to try an optimize my entries/exits.

    I am impressed you recall that discussion and hope you have benefited from it as I do find MFI and CCI helpful in alerting you to potential market turns.