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Zero Line Cross

May 23rd, 2008 · No Comments
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Introduction

The zero line moody trade uses a unplentiful term timeframe, with two long term CCI, and a single exponential moving average. The trade is based upon the CCI crossing over the zero line, while the price is on the correct side of the moving average.

The CCI displays the strength of the price as a value either above or below zero. When the CCI is above the zero line, the value has upwards momentum, and when the CCI is below the zero line, the penalty has downwards momentum. When the CCI is crossing the zero line, the momentum is switching from one direction to the other. The zero line cross trading system use this change of direction as its entry point, and uses the price in relation to the moving usually as a direction confirmation.

The default trade uses a 1 minute OHLC (Open, High, Low, and Close) bar chart, a 50 bar CCI, a 25 bar CCI, and a 34 bar exponential moving for the most part. The default trading time is any time that the market is open and active, such as the European morning for the purpose European markets, and the US morning for both US and European markets.

The following step by step tutorial of the zero line cross trade, will use the YM futures call, but faithfully the same steps should be used on whichever markets you are trading with this trade. The pursuit used in the tutorial is a short trade, using 1 contract, with a target of 20 ticks, and a stop loss of 10 ticks. The end demise is only old as a last resort, as the zero road cross trade includes an exit signal that should exit the work before the stop loss is reached.

  1. Introduction
  2. Open a Chart
  3. Add the CCI, and an Exponential Moving Average
  4. Watch the Market
  5. Wait for the Zero Line Cross
  6. Enter your Trade
  7. Watch for the Exit Signal
  8. Wait for your Trade to Exit
  9. Repeat the Trade
  10. Trading Reports

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