2012 DRAIN THE BANKS LIKE A RAT .... CONTINUED

[MightyOne]

1st trade of day, 2% down

Looks like you have an older version of the RAT ZONE indicator. I don't see W1 Bias.

If you have troubles winning, then try M15, M30 or H1... will cut down your possible number of entries.

http://i44.tinypic.com/j5f1ox.gif

[Fingobob]

Hi MO,
How did you come up with the S/R line?
How do you choose entry criteria for a wick?
Do you also use a 10 pip "space" for a time 5m time frame?
Thanks

[winny]

TRO,

I noticed that you went to FXDD, and probably left MB Trading.
Why did you leave MB and choose for FXDD ?

FXDD exists for 10 years I heard today.
They have a 2 pip spread on EUR/USD, why did you choose them ?

I use FXDD and ALPARI for CHARTING not trading!!

TRO,
I was happy to see that Oanda started offering the MT4 platform also for trading on the Forex market, but I noticed that there are lags and sometimes the Oanda MT4 order routing is delayed.

Still I would like to use MT4 for some charting purposes.
Why did you choose FXDD and/or Alpari, are their MT4 charts more
reliable in your opinion ? And do you use a demo feed with them or is it a real account that you use, for charting purposes ?

For trading Rat Zones, I think it is better to use the most reliable datafeed/broker. Preferably using GMT, or GMT+1

Thank you for your help.

[nickohorny]

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?
confused lol

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.

I see! I guess I am too wrapped up in trading one method which is literally wait for green to close and go long at top of green bars price. I take it as is, I am don't look to try new ways, maybe I should be

[nickohorny]

Today's trades so far.

First trade was on 15 min chart, as you can see i went long at top of a green 15 min candle, was with H1 - just. Lost 7 pips as pulled out because price was moving down.

[nickohorny]

Then on my 2nd trade not long after - I switched to the 5 min chart on same currency. And as I say in my chart, I noticed price HITTING NEAR the daily low, then on the next 5 min candle it sharply turned and seemed like it was heading north. So I simply jumped in, I figured they was not going to break the current low right now. I jumped on and got my 7 pips back riding it up.

Now I ask myself: Am I really seeing something and getting it right, or was it just luck and I have no idea what I am on about but like to think I do so tell myself I could SEE price wanted to go up. Hmmm

[jsme]

Whoa Nick.

I would like to see you master one style of trading before attempting to look at other ways to trade.
My origianl point for showing you the other way to trade is to show you. Their are other ways to trade, and I know when first learning the Rat Reversal trading style. It can seem like forever to wait for that one perfect setup.
And sometimes it does take hours. When things take such a long time to develope it is easier as a trader to force a trade.
By that I mean take a trade that is does not really meet all your rules.
Please learn one way before jumping onto another style to master.

Now on your charts. Hidsight is 20/20 but here is what I notice.

In the M15 chart. I did not see any pull back testing the new low. Than waiting for the normal trade set up. That is something I try to wait for.
By doing so I will admit I miss trades, but for me it also appears the trades I take are better.
Look at the M15 candles following your entry.

M5 chart. Glad you made money But....your question you asked yourself is very telling.
Did you enter the trade base on your rules or did you enter the trade on more of a hunch...and got it right.
The differance being mental disipline. I myself have done that also to be completly honest.
That is not disiplined trading. Sometimes I would win and some I lose.
I found that the lack of seeing trade set ups caused me to take those hunch ones.
In time as you learn more ways to trade, you will not be trading hunches.

[nickohorny]

Whoa Nick.

I would like to see you master one style of trading before attempting to look at other ways to trade.
My origianl point for showing you the other way to trade is to show you. Their are other ways to trade, and I know when first learning the Rat Reversal trading style. It can seem like forever to wait for that one perfect setup.
And sometimes it does take hours. When things take such a long time to develope it is easier as a trader to force a trade.
By that I mean take a trade that is does not really meet all your rules.
Please learn one way before jumping onto another style to master.

Now on your charts. Hidsight is 20/20 but here is what I notice.

In the M15 chart. I did not see any pull back testing the new low. Than waiting for the normal trade set up. That is something I try to wait for.
By doing so I will admit I miss trades, but for me it also appears the trades I take are better.
Look at the M15 candles following your entry.

M5 chart. Glad you made money But....your question you asked yourself is very telling.
Did you enter the trade base on your rules or did you enter the trade on more of a hunch...and got it right.
The differance being mental disipline. I myself have done that also to be completly honest.
That is not disiplined trading. Sometimes I would win and some I lose.
I found that the lack of seeing trade set ups caused me to take those hunch ones.
In time as you learn more ways to trade, you will not be trading hunches.

You are right.... def feels like I 'forced' that trade. I need to stay focused, my rules are to
take rat reversals as long as it is WITH H1 colour and within rat zone. That's pretty much it.. I did say 5 min charts but may switch to 15 min as TRO suggested to try take out the bad trades.

I also would like to implement using TRO's HOLO indicator, watched the youtube vids so just trying to get my head around it now.

I will stick to trading as my plan above from now and report back each day with my trades.

Thanks for all the help

P.S: one last thing, you mention you wait for a test of the daily low - so do you mean once price has made a new daily low - you will NOT take any longs until price once again comes back down to this level? and only then will you look for a rat reversal?

[jsme]

Whoa Nick.

I would like to see you master one style of trading before attempting to look at other ways to trade.
My origianl point for showing you the other way to trade is to show you. Their are other ways to trade, and I know when first learning the Rat Reversal trading style. It can seem like forever to wait for that one perfect setup.
And sometimes it does take hours. When things take such a long time to develope it is easier as a trader to force a trade.
By that I mean take a trade that is does not really meet all your rules.
Please learn one way before jumping onto another style to master.

Now on your charts. Hidsight is 20/20 but here is what I notice.

In the M15 chart. I did not see any pull back testing the new low. Than waiting for the normal trade set up. That is something I try to wait for.
By doing so I will admit I miss trades, but for me it also appears the trades I take are better.
Look at the M15 candles following your entry.

M5 chart. Glad you made money But....your question you asked yourself is very telling.
Did you enter the trade base on your rules or did you enter the trade on more of a hunch...and got it right.
The differance being mental disipline. I myself have done that also to be completly honest.
That is not disiplined trading. Sometimes I would win and some I lose.
I found that the lack of seeing trade set ups caused me to take those hunch ones.
In time as you learn more ways to trade, you will not be trading hunches.

You are right.... def feels like I 'forced' that trade. I need to stay focused, my rules are to
take rat reversals as long as it is WITH H1 colour and within rat zone. That's pretty much it.. I did say 5 min charts but may switch to 15 min as TRO suggested to try take out the bad trades.

I also would like to implement using TRO's HOLO indicator, watched the youtube vids so just trying to get my head around it now.

I will stick to trading as my plan above from now and report back each day with my trades.

Thanks for all the help

P.S: one last thing, you mention you wait for a test of the daily low - so do you mean once price has made a new daily low - you will NOT take any longs until price once again comes back down to this level? and only then will you look for a rat reversal?

Nick no worries about helping out. TRO helped me out a boat load.

I regards to testing.

What I would like to see as a green rate.
New low made.
Green candle made.
A pull back in prices. This does not mean a new low. Only a lower price made than the previous green candle(s)
Than I wait for the normal rat reversal set up. Long at the green high.

For example. Looking at your M5 chart.
Look at the low candle made 9 candles before your arrow.
Look at the prices moving up next candle (# 8 )
Look at a pull back....#7 candle. That is what I wait for. If that number 7 candle had made a new low. I start this all over again.

Please understand it is not the candle count I am watching but rather it is a low made than a pull back in the low direction and not a new low made.
Than I look for my trade set up.

[TheRumpledOne]

TRO,

I noticed that you went to FXDD, and probably left MB Trading.
Why did you leave MB and choose for FXDD ?

FXDD exists for 10 years I heard today.
They have a 2 pip spread on EUR/USD, why did you choose them ?

I use FXDD and ALPARI for CHARTING not trading!!

TRO,
I was happy to see that Oanda started offering the MT4 platform also for trading on the Forex market, but I noticed that there are lags and sometimes the Oanda MT4 order routing is delayed.

Still I would like to use MT4 for some charting purposes.
Why did you choose FXDD and/or Alpari, are their MT4 charts more
reliable in your opinion ? And do you use a demo feed with them or is it a real account that you use, for charting purposes ?

For trading Rat Zones, I think it is better to use the most reliable datafeed/broker. Preferably using GMT, or GMT+1

Thank you for your help.

I want to have more than one feed to watch price. I use demo and live feeds.