skivers wrote: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
If price has reached a daily high or low, all candles within the day from M1 to H4 will be at the same high or low prices, so I don't think they help very much unless you are trying to check for support/resistance regions.
It may be more useful to check (after some time from the daily Open, e.g. 6 to 10 hours later) if the day's range has reached at least 70%-80% of a longer term Daily ATR e.g. ATR(50) - the chance of a reversal will be higher if the current day's ATR is nearer to the longer term Daily ATR.
Also check the previous day's ATR. If it was much higher than the longer term Daily ATR, e.g. 150% of Daily ATR(50) then the chance of a reversal at a lower current day ATR is higher and vice versa, since they must average out towards the longer term ATR eventually.
I hope what I say is not Yale material, but useful enough to help those of us trying to guage the Daily high or low with higher probability.