Woodies CCI Horizontal Trend Line Break (HTLB) Pattern:

The hook from extreme (HFE) trades are formed when the CCI prints a bar at or past the +/- 200 and then starts hooking back toward the zero-line. This trade is a very difficult trade. The HFE pattern is used as one of the Woodies CCI exit signals as well.

A HFE trade can happen very fast. As soon as you see it hook back toward the zero-line you enter. Make sure you have your hard stop-loss orders in as soon as you get filled on entry, as this trade can get away from you very quick. As soon as you see a signal to exit then you exit immediately.

You will get stopped out of this trade often and this can happen even without seeing a CCI exit signal. This trade has around a 50% chance of success if you take every single HFE trade you see. However it can provide you with much larger profits than losses. You must use hard stop-loss orders when trading Woo
dies CCI or any other system for that matter.

The hook from extreme 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.

You can combine the HFE trade with either a trend line break or a +/- 100 cross CCI confirmation signal to add strength to the trade for a greater probability of success. Again, when new you are not to take this trade. There are a great many experienced traders that do not take this trade either.