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By Adam Milton, About.com Guide to Day Trading

Zero Line Cross - Updated Entry

Tuesday April 17, 2007

The zero line cross trading system has been updated to use a new entry. With the new entry, the trading system still takes all of the winning trades, but it now avoids some of the losing trades, so the profit potential is increased.

The new entry uses an additional CCI line, and a price bar breakout pattern, and for both long and short trades, is as follows :

Long Trade

  1. The 25 bar CCI closes above the zero line, and the price bar closes above the moving average (in any order)
  2. The 50 bar CCI closes above the zero line (the entry bar)
  3. Enter the trade when a subsequent price bar breaks the high of the entry bar

Short Trade

  1. The 25 bar CCI closes below the zero line, and the price bar closes below the moving average (in any order)
  2. The 50 bar CCI closes below the zero line (the entry bar)
  3. Enter the trade when a subsequent price bar breaks the low of the entry bar

The zero line cross tutorial has been updated to include the new entry, and has new charts showing the entry in detail.

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