Nikkei 225 Index JPN225 Daily - TREND INDICATOR TRADE IS SETUP

Here are some trade setups that I thought you might want to consider:

SETUP FOR TRADE:
1. 2-Month low for range movement indicator.
2. CCI reading > +100
3. Break previous day's low.
4. Risk 3 Average Ranges.
5. Cover when CCI <-100.
6. Or Trail stop by 3 ATR behind lowest close.

This generates a few trades with the first being a losing trade.
The "TREND INDICATOR" is a simple, price based indicator that has no price bounds. The "RANGE MOVEMENT" indicator needs to make a new 2-month high or 2-month low to indicate the trend.
THEN:
In an uptrend, buy dips to CCI -100 and exit on rallies to +100 or a 2-month high in price.
In a downtrend, sell rallies to CCI +100 and exit on declines to -100 or a 2-month low in price.

Therefore, a sell signal is setting up here: JPN225 needs to break under a previous day's low (PDL) to trigger a short sale.

Tim 5/20/2014 10:59PM EST