jsme wrote: nickohorny wrote: jsme wrote:
Nick this is my last trade for today. It is not a rat reversal trade, but it I wanted to point out a couple of things.
One I personally only trade a couple of currency pairs.
Two the rat reversal is only one way to trade (just like TRO says)
Have a look at this trade and see if you can figure out how, why I took this type of trade.
I will be back later to explain the how and why, but I find most people do better if they can figure things out on thier own
Hmmm slightly confused!
I see you have your Hour open line - the dotted white.
Then a red line for your stop, and what looks like the green for entry? not sure what these 2 lines represent though?
And even more confusing is it looks like you entered short for a small gain but I thought you were a green rat?
Good to see a thinker.
I am a green rat. I will only take a long trade when prices are in the rat buy zone and a correct set up occurs.
I will not take red rat set up trades.
The two red lines are the rat zone (buy area) for that time frame.
So even though their was a green rat set up. And I was able to take some small gains in that green rat set up.
The next type of set up has nothing to do with a rat trade. It is the set up I also took.
Prices were below the H1
Prices broke the low of the previous candle. So I took a short.
My point being. I take small gains. I risk small amounts (SL was just above the H1)
If I can take those small gains being a green rat. Wonderful
If I can take those small gians noticing a trade going with the H1, Wonderful
If I take a trade and it moves in my direction very fast. GREAT.
My goal for the day is 2% profits. I will take them how ever I can and go about my day.
Waiting for a green rat trade might take some time to allow it to set up correctly.
So I do as TRO says. I trade what I see.
The rat reversal trade is only one type of trade.
What if you were scanning several currecy pairs and none of them have a green rat reversal set up?
I still want my 2% for the day.
As you can note by looking at that screen shot. I only follow a couple of different pairs. No need in my view to watch a dozen different pairs. But this is what works for me. Do what works for yourself.
I suggest learing one way to trade inside and out but not allowing yourself to believe that is the ONLY way to trade. Be open for other trades (once you master one style) so you can hit your goal for the day.
please let me know if any of the above makes sense to you.
One final thought Nick. Ever seen a green rat reversal trade setting up real nice only to watch a new lower low be made.....That new low will be below the H1 open.
I trade what I see.