beginners questions

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Postby TheRumpledOne » Sun May 20, 2007 5:09 am

tjmxxx wrote:I don't trade forex, just AAPL for now. I personally wait until the price actually touches the buy or sell zone before placing any limit order, otherwise you will be filled before the buy zone on a limit order, placed at the open. If you are able to use stop orders, you can place them at the open I suppose, if that is what you prefer to do.

As for the two lines representing the buy zone, I always wondered about that myself. I really only use the first zone line.

Unless the set up comes up through the buy zone, or down through the sell zone, I don't take the trade. I don't take trades in the middle of the buy zone, only trades blasting through the first lines, long or short.

Perhaps someone else knows what the second zone line represents?

Every answer you might want is here, you just have to use the "search" function. Don't know about the second line though. I just use it as Avery said to use it. It works fine.

The 2 lines represent the entry 'zone' meaning it is ok to enter the trade when the price is in the 'zone'. Based on statistics, if AAPL moves .10 from the open, it will move .50 or more in that direction about 70% of the time. So it's ok to enter the trade in the zone.

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Postby scalperT » Mon May 21, 2007 10:32 pm

Gotcha Avery thanks,

I am still just taking set-ups "up" through the buy zone, or "down" through the sell zone.

I see no need to take trades in the middle, unless of course the price moved so fast you missed the initial set-up.

In any case, thanks again. Good info to know.


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