2009.09.10 DRAIN THE BANKS - LIKE A RAT

[Mark Mark]

Another question that excites me. How to determine that the price has updated the extremum (High or Low) within the day and will not be allowed to go further than this extremum?

You don't. Nobody knows that. You can only know what it is at the moment and trade accordingly.

You need to pay attention to the shift, expansion or narrowing of the daily range in relation to the previous one. Yes? you need to pay attention to the extremes of the previous day Yes?

[LeMercenaire]

Another question that excites me. How to determine that the price has updated the extremum (High or Low) within the day and will not be allowed to go further than this extremum?

You don't. Nobody knows that. You can only know what it is at the moment and trade accordingly.

You need to pay attention to the shift, expansion or narrowing of the daily range in relation to the previous one. Yes? you need to pay attention to the extremes of the previous day Yes?

Knowing what the ADR is is always useful. Knowing that the US session more often than not will open with a reversal of whatever the UK session has done re Cable is also useful.

Trade one or two pairs until you get to know their behaviour inside and out. The markets do the same old sh** day in, day out, every single day.

Today's Open. Yesterday's Open, High and Low. Weekly Open. ADR.

Not much else you need.

[LeMercenaire]

My screenshots with understanding of TRO methods Buy zone, Rat zone and Wick zone.
I got it right didn't I?

From my understanding, your RAT Zone is wrong. On a Sell, you are going to enter on the break of the low of the first candle to change colour back against the grain.

So, for instance, three green candles going in upper zone. You get one red candle. Go short as price breaks the low of that red candle.

[Mark Mark]

My screenshots with understanding of TRO methods Buy zone, Rat zone and Wick zone.
I got it right didn't I?

From my understanding, your RAT Zone is wrong. On a Sell, you are going to enter on the break of the low of the first candle to change colour back against the grain.

So, for instance, three green candles going in upper zone. You get one red candle. Go short as price breaks the low of that red candle.

You need to sell in the red zone from the minimum of the previous red candle. You need to buy in the green zone from the maximum of the previous green candle. Did I get it right from what you said? by the way thank you for writing

[pablo101]

My screenshots with understanding of TRO methods Buy zone, Rat zone and Wick zone.
I got it right didn't I?

From my understanding, your RAT Zone is wrong. On a Sell, you are going to enter on the break of the low of the first candle to change colour back against the grain.

So, for instance, three green candles going in upper zone. You get one red candle. Go short as price breaks the low of that red candle.

You need to sell in the red zone from the minimum of the previous red candle. You need to buy in the green zone from the maximum of the previous green candle. Did I get it right from what you said? by the way thank you for writing

You just sell in a red zone and buy in a green zone, that's the main rule.

The entry method is discretionary. From TRO's rat zone charts he enters mostly breakout of previous candles highs or lows.

From your charts, the zones seems a little weird, are you using smart rat zones?

[Mark Mark]

From my understanding, your RAT Zone is wrong. On a Sell, you are going to enter on the break of the low of the first candle to change colour back against the grain.

So, for instance, three green candles going in upper zone. You get one red candle. Go short as price breaks the low of that red candle.

You need to sell in the red zone from the minimum of the previous red candle. You need to buy in the green zone from the maximum of the previous green candle. Did I get it right from what you said? by the way thank you for writing

You just sell in a red zone and buy in a green zone, that's the main rule.

The entry method is discretionary. From TRO's rat zone charts he enters mostly breakout of previous candles highs or lows.

From your charts, the zones seems a little weird, are you using smart rat zones?

Thanks for your answer.
I am using TRO_RAT_ZONE.

[TheRumpledOne]

If you trading rat zone you need to trade in one direction because rats in maze turn always in one direction.
I have question how to decide how to choose direction?

You pick one.

And another question. When i need to start trading?
I should to start trading at daily market opening or i need to wait when range will be enough?

Rat Zone requires there to be a daily range of at least 60 pips.

[Mark Mark]

You pick one.

And another question. When i need to start trading?
I should to start trading at daily market opening or i need to wait when range will be enough?

Rat Zone requires there to be a daily range of at least 60 pips.

I go to sales in the red zone. And I go to buy in the green zone. After some time, the price updates the extreme and goes against me. How can I avoid these situations? The problem is that I can not determine where the price will not go next? What prevents me from earning is exactly what I enter before the daily maximum or minimum is updated. How do I enter the rat zone correctly?

[LeMercenaire]

My screenshots with understanding of TRO methods Buy zone, Rat zone and Wick zone.
I got it right didn't I?

From my understanding, your RAT Zone is wrong. On a Sell, you are going to enter on the break of the low of the first candle to change colour back against the grain.

So, for instance, three green candles going in upper zone. You get one red candle. Go short as price breaks the low of that red candle.

You need to sell in the red zone from the minimum of the previous red candle. You need to buy in the green zone from the maximum of the previous green candle. Did I get it right from what you said? by the way thank you for writing

Yep, that's correct...and no worries.

[pablo101]

"... The problem is that I can not determine where the price will not go next? .... "


If everyone knew where price would go next, we'll all be millionaires in less than a week.

Kreslik will always tell you that money management will make you money not the system. Just have a stop loss.