2009.09.10 DRAIN THE BANKS - LIKE A RAT

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TheRumpledOne
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Postby TheRumpledOne » Thu Sep 30, 2010 3:23 pm

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There are those who still do not understand and have doubts how this can work.

Look at the chart. It is a DAILY CHART.

See the dots.

The upper dot is 20 pips below the high of the day. If you go short above the dot, how many times can you exit with a profit?

The lower dot is 20 pips above the low of the day. If you go long below the dot, how many times can you exit with a profit?

The frequency distributions on the right hand side tell you how many times the daily wicks fell into the ranges. In this case it is for the last 5 days so you can easily count by hand.

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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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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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IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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TheRumpledOne
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Postby TheRumpledOne » Thu Sep 30, 2010 3:38 pm

tmanbone wrote:TRO,

Do you only take the first trade out of the rat zone or do you consider getting back in above, the zone, after a take profit and a retrace?


It depends. I try not to be too greedy.
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trueblueTEX
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Postby trueblueTEX » Thu Sep 30, 2010 4:05 pm

Avery,

does the "Count" in your screenshot above count the number of times that price made a bottom and them came up by 20 pips? (or down, for red rats?)

What indicator is that you used to show the distribution.

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TheRumpledOne
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Postby TheRumpledOne » Thu Sep 30, 2010 4:15 pm

Not exactly.

It only counts once per day if you are using D1 period.

TRO2009_WICK_COUNT_UI is the indicator.
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Postby TygerKrane » Thu Sep 30, 2010 4:20 pm

trueblueTEX wrote:Avery,

does the "Count" in your screenshot above count the number of times that price made a bottom and them came up by 20 pips? (or down, for red rats?)

What indicator is that you used to show the distribution.


trueblue,
It is the number of days used to gather the statistics.

The last 5 days were used to make those statistics. (5)

**Krane catches Tyger** !>I'm here to chew bubble gum and make major pips...and I'm all out of bubble gum.<!

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Postby trueblueTEX » Thu Sep 30, 2010 4:24 pm

THAT'S were the "5 days" comes in!! Ok, I got it, now.

Thanks to both of you for clearing things up!!

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Postby nkhawaja » Thu Sep 30, 2010 8:37 pm

TRO, so i tried using M15 and entred in a trade, see the picture attached, but at one point I was down 10 pips, but eventually i ended up in 20pips profit, any advise here. the arrow shows my entry at teh high of the green bar
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tmanbone
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Postby tmanbone » Fri Oct 01, 2010 11:35 am

nkhawaja wrote:TRO, so i tried using M15 and entred in a trade, see the picture attached, but at one point I was down 10 pips, but eventually i ended up in 20pips profit, any advise here. the arrow shows my entry at teh high of the green bar


Enter in the Rat Zone. You were 27 pips above. Why are your zones only 5 pips wide?
"The simplicity of the markets is it's greatest disguise"

T

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TheRumpledOne
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Postby TheRumpledOne » Fri Oct 01, 2010 12:03 pm

Image

Price within 20 pips of the daily low - that is OPPORTUNITY

Current price - current daily low is less than 20.

ClLo <= 20
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Postby tmanbone » Fri Oct 01, 2010 1:46 pm

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Squeeeeeeek!
"The simplicity of the markets is it's greatest disguise"



T

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