- Woodies CCI Ghost Trade Pattern:

The Ghost Trade pattern has 3 bumps in it. It has an arm, a head and then another arm in its pattern. The bumps used to spot this pattern can be made from the CCI or the TCCI. However, most people use CCI bumps for this pattern. It is preferable that the head is larger then the arms. To determine the entry point for the Ghost trade you draw a trend line across the underside of the Ghost across its neckline.

You can gauge the expected CCI movement for the Ghost Trade by measuring the distance from the top of the head to the neckline. The expected movement would then be a movement of that same distance from the neckline in the opposite direction to that of the head. You do not need to bother calculating the potential CCI move from the neckline as you will be exiting the trade as soon as the CCI gives you an exit signal anyways. All you need to do is follow the exit signals as defined in Woodies CCI.

Notice that when you draw the neckline (trend line) on the Ghost pattern you combine a trend line break (TLB) pattern along with the Ghost pattern which adds strength to the signal for a greater probability of success. Sometimes the neckline will slant toward the zero-line. These are the preferred Ghost patterns over the ones in which the neckline slants away from the zero-line. However, both are fine to take.

The Ghost Trade is a counter-trend trade. New students of Woodies CCI should not be taking this type of trade. However, keep your eye on it and learn as you progress.



Chart 1 Chart 2 Chart 3

3 Charts Above – Ghost Patterns.

The yellow lines show the CCI pattern. The single white lines show where the entry would be and the double white lines show where the exit would be.

The first chart has a very weak right arm. Notice that the trade didn’t go very far before it hooked back up and we had to exit. The 3rd chart shows a Ghost pattern that had a double head. That’s fine. Not all CCI patterns can be perfect.

Notice how all the necklines slant different ways. Some slant toward the zero-line and some away from it. Do not let this confuse you. Just enter the trade once it breaks the neckline, which is otherwise known as the TLB CCI pattern as well. This is yet another example of how the CCI patterns can and quite often do run together.

Be aware that the majority of the drawn Ghost pattern must be on the same side of the CCI zero-line. Sometimes a bit of it does form on the opposite side. This is perfectly fine if it is only a very small portion.

The exit signals are the same as in any other trade. Go review the section on how to enter and exit trades.

It is very important to remember that when you take one of these trades it does not mean you are supposed to stay in it forever. Always follow Woodies CCI exit signals.