If after taking the trades within the current high/low, the price then makes a new high/low. This immediately put your trades out of the RAT edges identified by the stats and the trade will statistically likely (not always if you are lucky) become a loser.
Although you can't (and don't know) if the current high/low is the ultimate daily high/low, RATs are willing to take the risk to find out?
Am I making sense? Please enlighten...
TheRumpledOne wrote:tradervic1963 wrote:TRO, How exactly do you know when the daily high or low has been reached? Isn't only until the day is over and price action is complete for that 24 hour period that you can determine exactly what the high or low was for that day? Price could open, make a high, drop and then near the end of the day retrace to higher than it was right before the day opened. Do the donational indicators clarify that the high or low has been made for the day? I want to believe but my brain is so addled from technical trading that I don't get it!
You do NOT know until after the day is over what the high and low price are for the day. But you do know that sooner or later as price makes a new high or new low that the high will be the high of the day and the low will be the low of the day.
Nothing can tell you what the high and low is until the day is over.
But the RAT doesn't have to know. The RAT accepts the "not knowing" and acts accordingly. And that is why the RAT beats the Yale students.