<--------------------------------------------------------------------> 1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch. 2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run BUT the RAT REVERSAL entry works ANYWHERE on the chart. <--------------------------------------------------------------------> PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run BUT the RAT REVERSAL entry works ANYWHERE on the chart.
"Now, 2 patterns of market behavior happen on a regular basis: 1) the price breaks to new high's (or low's) 2) the price reverses from new high's (or low's) They happen regardless of time frame (with the obvious limitations explained above) They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist." - H. Rearden ============================================= 1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY for GREEN RATS. Price within 20 pips of the daily high (HiCl < 20): This is OPPORTUNITY for RED RATS. ============================================ PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
============================================= 1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY ============================================ PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
does this works every time revisits the 20 pips within daily low/high or only the first time? Or only when a new daily low/high is created?
<--------------------------------------------------------------------> The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method. <--------------------------------------------------------------------> PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
Nothing "works" every time, when it comes to trading. Statistically, price will move more than 20 pips off the daily high/low, more times than not. You only know the current daily high/low. You enter the trade within 20 pips and take your chances. ANYTHING CAN HAPPEN! At the end of the day, you'll know the actual daily high/low.
============================================= 1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY ============================================ PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
"Now, 2 patterns of market behavior happen on a regular basis: 1) the price breaks to new high's (or low's) 2) the price reverses from new high's (or low's) They happen regardless of time frame . They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist." - H. Rearden <--------------------------------------------------------------------> By now, this should be obvious to the reader!! <--------------------------------------------------------------------> The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method. <--------------------------------------------------------------------> PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
"Look, for example, at this elegant little experiment. A rat was put in a T-shaped maze with a few morsels of food placed on either the far right or left side of the enclosure. The placement of the food is randomly determined, but the dice is rigged: over the long run, the food was placed on the left side sixty per cent of the time. How did the rat respond? It quickly realized that the left side was more rewarding. As a result, it always went to the left, which resulted in a sixty percent success rate. The rat didn't strive for perfection. It didn't search for a Unified Theory of the T-shaped maze, or try to decipher the disorder. Instead, it accepted the inherent uncertainty of the reward and learned to settle for the best possible alternative. The experiment was then repeated with Yale undergraduates. Unlike the rat, their swollen brains stubbornly searched for the elusive pattern that determined the placement of the reward. They made predictions and then tried to learn from their prediction errors. The problem was that there was nothing to predict: the randomness was real. Because the students refused to settle for a 60 percent success rate, they ended up with a 52 percent success rate. Although most of the students were convinced they were making progress towards identifying the underlying algorithm, they were actually being outsmarted by a rat." P64 HOW WE DECIDE (italics added) ========================= ==================== "Now, 2 patterns of market behavior happen on a regular basis: 1) the price breaks to new high's (or low's) 2) the price reverses from new high's (or low's) They happen regardless of time frame (with the obvious limitations explained above) They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist." - H. Rearden ============================================= 1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY ============================================ WHY ISN'T EVERYBODY DOING IT? Most of you know I catch a lot of flak on my forums because SOME PEOPLE don't like the way I post. One worn out argument that is used repeatedly is, "If this is so (simple, great, profitable, ), then why isn't everybody doing it?" Simple answer is because SOYLENT GREEN is people! We all know exercise is great, but how many actually exercise? We all know smoking is bad, but how many do it anyway? We all know which foods are bad for our health, but how many eat those foods? We all know that we should save for our future and spend less than we earn but who does that? The list is almost endless. As long as there are people, there will always be some STUPID people and some smart people making STUPID decisions, where STUPID is defined as knowing better but acting otherwise. Meanwhile, the RATS are still beating the Yale students. ============================================= PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.