============================================= "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 ============================================ 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... ============================================ PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
============================================= GREEN RAT REVERSAL TRADE 1) price within 20 pips of the daily low - that is OPPORTUNITY 2) red candle closes 3) green candle closes - note the high price of the green candle. 4) enter long at the green candle's high price 5) STOP LOSS IS 10 PIPS 6) Take whatever profit you can. 7) If the rules do not mention it, then it is of no concern. "The technique is so simple that just several lessons (or a few pages of explanations) cover it all. Now what? Now the student has to practice, practice and practice again to understand what he had been taught. The teacher DOES know much more than the student, but his understanding can't be "passed", "transferred" or taught in any way -- not even by reading books." ============================================ 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) - that is OPPORTUNITY <--------------------------------------------------------------------> PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
You must first learn to capture the small pips BEFORE you go after the larger pips. You need an EXIT PLAY BOOK. What do you do at: + 1 pip - wait + 2 pips - wait + 3 pips - move stop to break even + 4 pips - wait + 5pips - move stop to entry + 2 etc.... up to 20 pips or more. Then STICK TO THE EXIT PLAY BOOK. Your job is to execute. The market will take care of the rest. Each trader must create their own EXIT PLAY BOOK.
This should make it easier to understand. There is a frequency distribution of the upper and lower daily wick sizes. There is a histogram of the wick sizes.