Woodies CCI Shamu Trade (shamu) Pattern:

A shamu pattern is when the CCI passes through the zero-line (ZL), flips back around and comes through the ZL again, and then once again turns around and crosses through the zero-line to continue its original direction. It’s sort of a zigzag pattern around the ZL. It doesn’t have to be directly on the zero-line but it’s better when it is. When the zigzags on the CCI happen within the +/-50 area it makes for a better pattern.

Notice that the shamu trade pattern is a failed zero-line reject pattern. Originally it was a ZLR pattern. But the ZLR turned around and failed so we had to exit. This is why you do not wait around and hope a trade is going to correct itself and go back your way. If you were in all of these trades as the initial ZLR trade and it turned on you but you did not exit then you would be racking up potentially large losses. You must exit based on the guidelines Woodie has created. That is the defined system. You have no choice.

The shamu trade is a counter-trend trade and was developed as a type of stop-and-reverse (SAR) trade to the failed ZLR. 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 – Shamu Trade Pattern.

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 single white lines show the entry for this type of trade and the double white lines are the exit signals.

A Shamu Trade failure pattern is not shown. A failure of the Shamu Trade would be yet another swing back through the zero-line after our trade entry to take out the other side of the prior swing low/high. It does happen and all you do is exit based on the rules defined by Woodies CCI.

On all 3 charts there are two possible entry points shown as single white lines. It depends on if you always add confirmation signals to your trades. If you do then when taking the shamu trade then let it take the swing high/low out for the entry signal. However, most people would enter the trade on the first white line. If however the shamu pattern is a perfect one and is evenly split across the zero-line then the entry could be the zero-line cross (ZLC).

In the 2nd chart it shows two possible exits for the trade. The first set of double lines is when the TCCI is crossing into the CCI. You would exit your first contract at that point. If you were trading more than one contract you would then set the rest to b/e+1 and wait for the next exit signal to come. We see that the second exit signal is the second set of double white lines showing the HFE exit signal.

The first two charts are Shamu Trade long patterns. The 3rd chart shows a Shamu Trade short pattern.

Notice that the 2nd chart shows a shamu trade pattern that doesn’t quite come down below the zero-line. That’s ok. Not every pattern can be perfect. It's still a valid shamu trade.

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.