2009.09.10 DRAIN THE BANKS - LIKE A RAT

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unreconciled
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Postby unreconciled » Tue Dec 06, 2011 11:24 pm

Trying to put things together:

Price reversing over the highest/ lowest open implies that it hit possible s/r level.

Price reversing over the previous candle's open price is treated as a change in control (price direction).


Example:

There is a 3lvl. semafor at the top, warning about possible change in price direction.
I will go SHORT on the previous green candle's open price or previous highest open price.

Question:

What is the reason, TRO, you take the previous lowest/highest open price once, and then you take just previous candle's open price another time?

(The answer is, as I expect, there is no difference. But I am not sure)
Last edited by unreconciled on Wed Dec 07, 2011 7:13 pm, edited 1 time in total.

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TheRumpledOne
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Postby TheRumpledOne » Wed Dec 07, 2011 5:12 am

Question:

What is the reason, TRO, you take the previous lowest/highest open price once, and then you take just previous candle's open price another time?

I don't understand the question.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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unreconciled
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Postby unreconciled » Wed Dec 07, 2011 8:41 am

What is the difference between:

Image

previous lowest/highest open price

and:

Image

previous candle's open price?


What I suppose, it is just like looking at different timeframes with 'spatial intelligence', so you take the first one that comes in handy.

And maybe, there is still something I do not see, so the question is absolutely misled.

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TheRumpledOne
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Postby TheRumpledOne » Wed Dec 07, 2011 2:29 pm

Image

1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY

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

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IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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nickohorny
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Postby nickohorny » Wed Dec 07, 2011 2:59 pm

TheRumpledOne wrote:
nickohorny wrote:Man my feeble brain has been trying to understand what is going on, from looking at the charts and the horizontal lines of the LL/prev LL and HH/prec HH etc I can just purely see the attached...





Hmmm :shock: :shock: :shock:


Nice annotation but you left something out... what is the chart telling you?

Or another way...

What does price crossing below the highest open imply?

What does price crossing above the lowest open imply?


HINT: The open price does not change!


Still struggling lol! Only thing I can think is:

What does price crossing below the highest open imply?
If price crosses BELOW the highest open then at some point a new High Open will be created thus making that one it crossed a 'previous HO' Which signals to me that price is continuing lower??

Should price go ABOVE instead then a new HO will be created ABOVE thus making the one it crossed a previous HO which signals to me price is climbing higher?

Does this have anything to do with the space between the 2 opens?

or if the previous OPEN is ABOVE or BELOW the current one? Eg/ if price goes lower then the recent open will be above current at some point, if other way round it will continue to make a new High open and recent one is below current.

Agh My brain hurts haha
:x :?

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TheRumpledOne
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Postby TheRumpledOne » Wed Dec 07, 2011 3:12 pm

Image

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

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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Columba
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The HOLO conundrum . . . revisited

Postby Columba » Wed Dec 07, 2011 6:48 pm

TheRumpledOne wrote:Brookmyre: You are almost there. Now, what do you SEE? Do not postulate a theory. Look at your chart and tell me what you see!

unreconciled: Can you describe what DEFINES the reversal? That will solve the puzzle!!

HINT: Keep it simple - all you need to trade is a HORIZONTAL LINE!!



What have we learned along the way?

1. As horizontal lines (HL) are crossed take entry in the direction of price movement.

2. A reversal? Price makes a HH retraces a bit, rises again but is unable to take out the HH. If price is not rising, it is falling. We should pay attention to this.

Putting these two ideas together it seems a entry upon crossing the HL from the previous high open (or low open) in the direction of price away from the HH or LL makes sense. And entering on THIS HL is a stronger argument than a random HL entry.

We DON'T know how far it will go in this direction. We can't control that, but we exercise appropriate MM and trade accordingly taking what we can get.

Columba

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Postby TheRumpledOne » Wed Dec 07, 2011 8:26 pm

Columba:

1) that depends... sometimes you only want to trade in one directions

2) If price is not rising, it is falling. YES!!
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Postby TheRumpledOne » Wed Dec 07, 2011 8:28 pm

nickohorny:

Nothing to do with spaces... only lines.

Do not think.. OBSERVE and SEE!!
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Postby slingblade » Wed Dec 07, 2011 11:29 pm

If price is closest to the HO line and you trade short, the LO line gives you an idea of how far price could potentially move before meeting an established point of resistance. This could be useful in deciding on a target?

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