2009.09.10 DRAIN THE BANKS - LIKE A RAT

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tmanbone
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Postby tmanbone » Sat Oct 09, 2010 12:38 am

TheRumpledOne wrote:Image

RESULTS.

Reversals come in one of two flavors, "V" shaped or "U" shaped. This was a "U" shaped.


Bump for current students. Study this until the :idea: goes off.
"The simplicity of the markets is it's greatest disguise"

T

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skivers
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Postby skivers » Sat Oct 09, 2010 9:57 am

tmanbone wrote:
TheRumpledOne wrote:Image

RESULTS.

Reversals come in one of two flavors, "V" shaped or "U" shaped. This was a "U" shaped.


Bump for current students. Study this until the :idea: goes off.


tmanbone - is this any closer?


Tro mentions more than two reasons not to have entered on the first two reversals


1).After a fall like that, just one green candle on its own wasn't enough evidence - after seeing two greens close side by side you saw a possible reversal signal?

But a V shaped formation might not have given you time to enter on the break of a previous high - so you simply place a market order at the top of the zone and grabbed any pips offered?

And after the first green pair together - the greens simply start to balance the reds - so you can plainly see the market is fighting back here?



2). price does not like to stay between the lines- so would want to break out one way or the other - the evidence for support and a reversal was building.


Thanks for discussing this resurrected screen shot. I know I have got a lot out of it - even knowing I was looking in the wrong direction to start with helps



If I can quote from the Film 'The Shawshank Redemption' -- "Salvation lies within" -Well a bit anyway :)

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skivers
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Postby skivers » Sat Oct 09, 2010 10:45 am

tmanbone wrote:
TheRumpledOne wrote:Image

RESULTS.

Reversals come in one of two flavors, "V" shaped or "U" shaped. This was a "U" shaped.


Bump for current students. Study this until the :idea: goes off.


Another thought from this Yale student is that the Last three candles have broken up from the consolidation area (sweet spot line) - i.e even the lower wicks are higher than the sweet spot line - after that we had the reverse.

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tmanbone
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Postby tmanbone » Sat Oct 09, 2010 1:18 pm

It would have to be a V before it could be a U. If it's not a V it's a U.
"The simplicity of the markets is it's greatest disguise"



T

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Postby skivers » Sat Oct 09, 2010 4:40 pm

tmanbone wrote:That's the daily open minus ATR (14) 10 pip zone shaded the color of cheese, when it's not behind the green rat zone color. Select show shade ATR = true.

Image


HI Tman



You have an MA plotted with two areas circled that close below the MA - I notice they are the first two candles in the rise whose bodies close below the MA - A " time to think about getingt out of the party signal" perhaps?



Sorry for all the questions :oops:

Your help in making me think about this is appreciated

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tmanbone
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Postby tmanbone » Sat Oct 09, 2010 8:06 pm

Take two traders taught the same method for a period of time, cut them loose, and they will not trade exactly the same. I think we take a little here, maybe a lot there and make it our own. My chart was just an observation. I study several traders. I noticed some struggle on when to get out.
"The simplicity of the markets is it's greatest disguise"



T

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skivers
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Postby skivers » Sun Oct 10, 2010 10:46 am

tmanbone wrote: I noticed some struggle on when to get out.


Yep that's the hardest bit.

A very interesting technique - This is proving a very useful thread. Thanks

:)

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Postby skivers » Sun Oct 10, 2010 2:02 pm

TheRumpledOne wrote:Image

The first 2 green rat reversals were losing entries.

Do you see a reason not to enter those trades?

Hints: There are at least 2 reasons. Use your eyes to see - do not think about it.


OK - Tro wrote this much earlier in the thread.

QUOTE

The RAT REVERSALS wait for 2 bars to close BEFORE an entry is made. On M5, that is at least a 10 minute wait. You can check if the range on higher time frames have been exhausted. The main thing to do is WAIT. BE PATIENT. You know price will reverse - wait to SEE IT
Last edited by skivers on Sun Oct 10, 2010 4:43 pm, edited 1 time in total.

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Postby skivers » Sun Oct 10, 2010 2:14 pm

tmanbone wrote:It would have to be a V before it could be a U. If it's not a V it's a U.


something else I found on this thread from TRO


QUOTE

"Price is either going to bounce hard and fast, or it is going to linger at the bottom. Usually, there is an "equal and opposite reaction". If price drops fast, it usually bounces back fast. If it slowly drops, it will rebound slowly.

Don't be in such a hurry. Let price move away from the daily open. If W1, H4 and H1 are red. Let the red rats get some cheese. Let the red H1 close. Then see what the next H1 candle is doing. Is it going up or down?

Price is like a rubberband ... it stretches and snaps back or it breaks."

There is so much more you understand on the second and third reading of this thread - It's worth several reads

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trueblueTEX
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Postby trueblueTEX » Sun Oct 10, 2010 2:46 pm

Very good point, skivers.

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