Woodies CCI – Strategy Analysis (5) Famir, Vegas, and Ghost trade pattern

Introduction of Famir pattern

Up to the last article, I have introduced the trend follow patterns to entry in the direction of the trend in the Woodies CCI patterns. From this article, I will introduce six counter trend patterns to enter in the opposite direction to the trend. First, I will introduce “Famir pattern”

In addition, the official reference mentions that beginners should learn the trend follow pattern first and should not trade with counter trend patterns.

The Famia method is a counter trend pattern to use when the ZLR pattern which was introduced in the second article fails, in other words, when the trend changes as it is without returning to the original trend.

Example of Famir pattern

Please see the example chart below.

The price movement looks similar to ZLR pattern before the red vertical line. But it does not return to the trend direction, but enters again in the opposite direction (The red vertical line means entry timing).

The official reference mentions that it is a pattern that is difficult for beginners to recognize, and it is necessary to feel it. It also mentions that because of the loss cut of the ZLR pattern by beginners, it has a high probability of success and is favored by many traders.

Introduction of Vegas pattern and Ghost pattern

Next, I will introduce two patterns called “Vegas” and “Ghost” in counter trending patterns that enter in the opposite direction to the trend.

Both the Vegas pattern and the Ghost pattern use the characteristic as follows.
“Before the trend finally ends and the CCI moves toward the zero line, a small reversal movement that returns to the trend direction happen, and then a movement that moves in the opposite direction to the trend again”.

Example of Vegas pattern

Please see the Vegas pattern example in the chart below.


 
In the chart above, there are three Vegas pattern entry points (red vertical line means entry timing).
At the end of the downtrend, CCI begins heading towards the zero line. However, the CCI once showed a movement back toward the trend (down direction in the chart above), and then resumed movement toward the zero line, finally ending the trend.

In other words, the Vegas pattern is to enter long at the point where the CCI exceeds the previous high after the dip or to enter short at the point where the CCI exceeds the previous low after the rally. Please see the blue horizontal line in the above figure as he entry points).

Example of Ghost pattern

Please see the Ghost pattern example in the chart below.


 

The red vertical line means the entry point for the Ghost pattern. You will enter when you cross the line (blue line in the above chart) that connects the two small tops (or small rallies). The Vegas method has one top (or rally) of CCI movement, and the Ghost method has two tops (or rallies).