2009.09.10 DRAIN THE BANKS - LIKE A RAT

[ajaymein]

TRO, you crack me up. I bet you have a Notepad/Word Document where you just copy and paste replies. LOL

[TheRumpledOne]

Notepad.

[TheRumpledOne]

OK, now here's a question.

On your last chart TRO, why didn't you take the earlier break of the first green candle after the large red candle down and the subsequent red candle?

I can think of a few reasons (not yet in the daily rat zone, wait for some downwards triangular consolidation before breakout)
Just wondering what your take on it was...

If a red H1 candle is in the RAT ZONE, I wait for it to close. Then I wait for the next H1 candle to test the low. After that, green rats go with the green H1 candle.

[ajaymein]

Notepad.

OKAY I'm done laughing...LOL

[TheRumpledOne]

Price within 20 pips of the daily low (ClLo <= 20) - that is OPPORTUNITY

Current price - current daily low is less than 20 pips.

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PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[TheRumpledOne]

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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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PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[tacoman]

Hi All,
Took this Green Rat trade today. Should I have taken this or was S2 resistance a factor in this loss?

Thanks,
Rob (still on the path to enlightenment)

[TheRumpledOne]

What color was H1 when you enter the trade?

What color was D1 when you enter the trade?

What color was W1 when you enter the trade?

Why don't you have the RAT ZONE indicator loaded?

[tacoman]

W1 and D1 Red, H1 Green.
Rat zone now loaded.
I guess just using the CandleColor Multimeter is a bit too minimalist?
Given last weeks open and S2 just above the entry point are these factors for a Rat to consider or ignore?
Thanks for your assistance.

[TheRumpledOne]

This is trading - ANYTHING CAN HAPPEN.

Price never closed above the low when the candle touched S2.

You were swimming against the D1 and W1 currents.

What did you expect to happen?