Rule of 10 Journal

Discussion in 'Journals' started by jagmot, Aug 6, 2008.

  1. For the record, the NQ declined a little over 100 points from the recent swing high (1977.25 to 1876.5). Long in the upper 70's, with a stop at breakeven and a target of 1925.

    (trade disregarded, blah, blah, blah. Oh, yeah, wrong board!)

    As I made it clear on the ES board, I do not use the rule of 10 intraday, but have little doubt that markets often make moves in multiples of 10 (esp 50 and 100, and higher in the Dow).
     
    #571     Aug 27, 2008
  2. volente_00

    volente_00

    For the last time, the smas are never used for an entry. NEVER EVER EVER EVER EVER

    They are use to determine a trend or chop day. This will help you determine if you should trail the stop on an existing entry from a r10 signal, or reverse on that r10 signal instead of holding through it.

    On the trend examples how many times does they cross from 8 to 12 ?

    On the chop, how many times does the red cross the blue to the downside ?



    I am looking for divergence. on a trend they will mostly stay parallel, on a chop they will diverge before the crossover materializes.

    On a down trend day watch for price to stay under the red line.

    On a uptrend watch for price to stay above the blue line.


    on a trend day there will be very few sma crossovers, on chop there will be many as like today was.


    Are you confused even more now ?
     
    #572     Aug 27, 2008
  3. volente_00

    volente_00

    cross correlations ?

    Who could have thought ?


    :D
     
    #573     Aug 27, 2008
  4. Magna

    Magna Administrator

    C'mon guys, this is a good journal, let's keep it friendly and respectful. No name-calling, no childish crapola. Thanks.
     
    #574     Aug 27, 2008
  5. Pekelo

    Pekelo

    I mentioned this earlier, so let's repeat it again, the R10 works pretty well overnight, because the night is usually less trendy. 72.5 short was an excellent entry and went below 66, with not much heat. (74.5 was the high)

    Advice for Jagmot :

    Here is how I would "automatize" the overnight trading. Using the afternoon high or low I would put in a limit order (sell 72.5) with a conditional stop loss AND target. The target should be either 3 or 5 points, I wouldn't hope for a full 10 points move. Since I expect this with a win ratio better than 50%, even the 3 pts target should be profitable in the long run.
     
    #575     Aug 27, 2008
  6. Pekelo

    Pekelo

    If the 2 consequtive candles (touching the BB) are different colors, I expect a reversal, if same colored, I expect continuation.

    I use the RSI for doubletop/bottom. If divergence with the price, I expect it to work, if convergence, I expect it to fail.
    I use Williams for both entry and exit unrelated to the BB....
     
    #576     Aug 27, 2008
  7. monti1a

    monti1a

    I agree..this journal is one of the last bastions of hope for ET...let's keep it civil...
     
    #577     Aug 27, 2008
  8. Pekelo,

    How did your BB do last night to get you out..."my confirmation "came @71.75 on the downslide and would have taken profits @ 67.50 net =4.25 gain.

    Only problem was that I would have had to wait approx. 2 hours for my signal:mad:
     
    #578     Aug 27, 2008
  9. Based onn " hard 10 " rule we have a sell @ 75.50 s/l 77.50...9-11 74.50 s/l 77.50 and 76.50 s/l 79.50.
     
    #579     Aug 27, 2008
  10. Pekelo

    Pekelo

    BB doesn't work in slow, grinding markets. Last night I would have taken automaticly the 3 pts gains (because I prefer sleeping), as I advised Jagmot in my earlier post.
     
    #580     Aug 27, 2008