Friday, March 13, 2009

Forex Trading-Making Money With Woodie's CCI

Ken Wood is a unique man. He's a successful trader as I'm sure you know. He runs a website (I don't remember the address, just Google his name). It's a huge community of traders all trading his style--Woodie's CCI. Even better it's all free.

Well, I will admit that I tried to trade Woodie's CCI method. I couldn't make it work for me. However, I think that was mostly because I disagreed with him about some fundamental issues, not because his method didn't work.

For example, did you know that Ken recommends that you don't look at price at all? To quote him, "You don't need no stinkin' price!" Furthermore Ken maintains that the CCI is a leading indicator. (No such thing exists, but that's another story.)

So I just couldn't swallow all that. However, it obviously works. Thousands of traders converge on his website to trade together all day and night.

Now, if you can't look at price, just how does Woodie make his profits? He actually has about six patterns (his favorite is the ghost), that you need to learn to see in the CCI itself. No, I'm not kidding!

I believe he sort of invented a new form of technical analysis. That is finding patterns on indicator. The only problem is it's not a leading indicator. If there was such a thing as a leading indicator, that would be equivalent to saying that some mathematical formula knows the future. Really?

Obviously that isn't true. So no leading indicators exist.

Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".

Download it free here: Forex Trading

Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide

A man looks at the stock price monitor at a private securities company Friday March 13, 2009 in Shanghai, China. Asian markets soared Friday as the prospect of fresh stimulus measures in China and Japan and upbeat signals from major U.S. firms like Bank of America sparked hopes of a turnaround in the world economy. Chinese markets, closed to most foreign investors and often out of sync with regional bourses, were lower, with Shanghai's benchmark giving up early gains to trade down 0.2 percent. (AP Photo/Eugene Hoshiko)AP - World stock markets railled again Friday as confidence remained buoyed by positive U.S. economic data, hopes of further stimulus measures from Japan and China and an upbeat comments from Bank of America's CEO.

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