and now i remember... that is why i do not use the CCI. i got a 100 pip SL on this trade, BUT not my finest hour. i'll venture to say that between 135 and 135.25 is a good sell zone. if that gets taken out, then so be it. but if not, 133.50 here we come.
EURObull
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Yes, CCI requires some patience. The only reason why we see this upward juicing is because too many people got on board short. This last move was totally fueled by short covering and still reflects in bearish CCI divergence. Watch for some news event to "drive" this back to where it was originally headed.
isomorph
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actually you are right. the CCI needs a filter. when price PA contradicts CCI, then we know not to take or cancel the trade, just like what happened yesterday around 134. i looked at it again and see now that 134 definitely wasn't the right spot to go in short. the divergence was early, but PA took about 10 bars on M30 to show it.
don't you think that the bullish pressure underpinning EURUSD this whole week is also propping up EURJPY, preventing it from dropping too far? in comparison, GBPJPY gave us a nice 200 pip run today. even so, i've decided to stay clear more often than not from GBPJPY and EURJPY, and all other synthetic JPY crosses, focusing on majors instead--i find the PA and patterns formed on majors are usually easier to decode, although GBPUSD can be a real bitch at times. 1 famous market commentator, Jamie Coleman, used to call it 'the devil's currency.' ;) i have to agree.
EURObull
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Thanks Iso, The last 5 years has been a great learning experience and knowing this pair's tendencies allows me to trade it with complete confidence. I just laugh when I see moves like this. I think EUR/USD is facing the same challenge, too many humans and robots getting short, so the manipulators in control keep juicing upwards. The underlying truth always comes out, and profits ensue.