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1) Price within 20 pips of the daily low (ClLo < 20) - that is OPPORTUNITY
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The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.
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Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS.
THINK ABOUT IT!!
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MAXIMUM RISK = 2% * ACCOUNT BALANCE.
STOP LOSS = 10 PIPS. (INCLUDING SPREAD)
POSITION SIZE = RISK / STOP LOSS.
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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.
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"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
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1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY
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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.
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Are you trading AGAINST the H1 candle color?
Are you trading AGAINST the D1 candle color?
Are you trading AGAINST the W1 candle color?
Unless you know what the entry trigger is, how can you determine the timing of the entry?
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http://kreslik.com/forums/viewtopic.php ... start=3200
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.
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The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.
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"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."
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