2009.09.10 DRAIN THE BANKS - LIKE A RAT

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nickohorny
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Postby nickohorny » Tue Oct 18, 2011 12:51 pm

I'm kinda struggling with this also, I have for the last 2 days had my MP HLC PIP chart open, awaiting for opportunity (green rat) so the ClLo coloum to show -20 pips.

When they do, any currency is pretty much bias down in H1/D1/W1... AT LEAST 2 out of the 3 have been, and rule of thumb stating DO NOT GO LONG IF BELOW WEEKLY / DAILY is making me get impatient as I'm finding it hard to find real opportunity with these rules of thumb.
I am complete newbie, so do not want to begin breaking rules and want to strictly follow trading long when the bias matches to be safe, but as I say I have yet to find a pair to practice entry on due to this!
I am only looking at a couple of pairs to keep it simple also, but even still glancing over EVERY pair I have not seen the bias match.

Any advice?
Thanks :roll:

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oldmangeezer
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Postby oldmangeezer » Tue Oct 18, 2011 12:53 pm

If you place line on your chart using the daily high and daily low from my midnight candle.

I do this with the 1 hour chart first when I get up in the morning.

What TRO is saying (I think) is that price will break the previous daily highs and lows.

1) If you have a daily high and daily low on your chart and your watching price you will see it break through these areas (sometimes).

2) If you see price close within 20 pips of the daily high (Red Rat Team) or daily low (Green Rat Team) this is where watch for a potential set-up for a Rat Trade. Of course this depends what Rat you are!!

If this is incorrect hopefully someone will correct this

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TheRumpledOne
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Postby TheRumpledOne » Tue Oct 18, 2011 1:21 pm

Image

<-------------------------------------------------------------------->

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

<-------------------------------------------------------------------->

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

<-------------------------------------------------------------------->

Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS.

THINK ABOUT IT!!


<-------------------------------------------------------------------->

MAXIMUM RISK = 2% * ACCOUNT BALANCE.

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

POSITION SIZE = RISK / STOP LOSS.

<-------------------------------------------------------------------->

1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch.

2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run BUT the RAT REVERSAL entry works ANYWHERE on the chart.

<-------------------------------------------------------------------->

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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Postby TheRumpledOne » Tue Oct 18, 2011 1:46 pm

Image

<-------------------------------------------------------------------->

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

<-------------------------------------------------------------------->

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

<-------------------------------------------------------------------->

Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS.

THINK ABOUT IT!!


<-------------------------------------------------------------------->

MAXIMUM RISK = 2% * ACCOUNT BALANCE.

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

POSITION SIZE = RISK / STOP LOSS.

<-------------------------------------------------------------------->

1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch.

2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run BUT the RAT REVERSAL entry works ANYWHERE on the chart.

<-------------------------------------------------------------------->

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

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TheRumpledOne
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Postby TheRumpledOne » Tue Oct 18, 2011 3:35 pm

Image


=============================================
GREEN RAT REVERSAL TRADE

1) price within 20 pips of the daily low - that is OPPORTUNITY

2) red candle closes

3) green candle closes - note the high price of the green candle.

4) enter long at the green candle's high price

5) STOP LOSS IS 10 PIPS

6) Take whatever profit you can.

7) If the rules do not mention it, then it is of no concern.


"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."

============================================

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

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TheRumpledOne
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Postby TheRumpledOne » Tue Oct 18, 2011 7:32 pm

Image

"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

=============================================

"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."

============================================

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

oldmangeezer
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Postby oldmangeezer » Wed Oct 19, 2011 2:39 am

GREEN RAT REVERSAL TRADE

1) price within 20 pips of the daily low - that is OPPORTUNITY

2) red candle closes

3) green candle closes - note the high price of the green candle.

4) enter long at the green candle's high price

5) STOP LOSS IS 10 PIPS

6) Take whatever profit you can.

7) If the rules do not mention it, then it is of no concern.

Stupid question:

#1 and #2:
1) price within 20 pips of the daily low - that is OPPORTUNITY

2) red candle closes

The close of the Red Candle must be within 20 pips of the Daily Low?

TRO are there times when you would not pull the trigger if 1), 2), and 3) occur?

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TheRumpledOne
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Postby TheRumpledOne » Wed Oct 19, 2011 1:27 pm

Image

<-------------------------------------------------------------------->

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

<-------------------------------------------------------------------->

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

<-------------------------------------------------------------------->

Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS.

THINK ABOUT IT!!


<-------------------------------------------------------------------->

MAXIMUM RISK = 2% * ACCOUNT BALANCE.

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

POSITION SIZE = RISK / STOP LOSS.

<-------------------------------------------------------------------->

1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch.

2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run BUT the RAT REVERSAL entry works ANYWHERE on the chart.

<-------------------------------------------------------------------->

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

User avatar
TheRumpledOne
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Postby TheRumpledOne » Wed Oct 19, 2011 1:54 pm

Image

=============================================
GREEN RAT REVERSAL TRADE

1) price within 20 pips of the daily low - that is OPPORTUNITY

2) red candle closes

3) green candle closes - note the high price of the green candle.

4) enter long at the green candle's high price

5) STOP LOSS IS 10 PIPS

6) Take whatever profit you can.

7) If the rules do not mention it, then it is of no concern.


"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."

============================================

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

extrema
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Postby extrema » Wed Oct 19, 2011 2:42 pm

Today I have this example imagw with before and after the reach and retreat on the max days price.
Entered as a "red rat" and made a 30 pip profit.
I study this new tactic rat method" and could not be more correct than this.
The most important is to catch the highest or lowest price in moment and act accordingly ( short or long positions) when it is reversing. So identifying these two is of critical value.

Image

Uploaded with ImageShack.us


What I would note is that this method has to be ( in terms of pips) re-evaluated when biding on Gold.. 20 pips on gold is like 20cents and it is very short I recon to a daily about 4000 pips or more...see image



I would say to my experience trading Gold that a 100-150 pip zone would be better for this trade alone.
What do you think ?

TRO I want to thank you again for you input and by first chance I will donate you.. Dont remember where I have read it but I can say this.
" Genius is someone that takes something simple and make it simple."

Cheers

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