TheRumpledOne wrote:newscalper wrote:TRO - given the wick distribution of 20 pips would I be correct in saying that the ideal setup to capture the daily range would be as follows:
Price above weekly open (not sure about this for Sunday going into Monday)
Price within 20 pips of daily low whereby daily low has not moved more than 20 pips lower than daily open i.e the high of the rat zone remains at the daily open.
Entry long within 20 pip rat zone or as price crosses back past open (i.e. opposite extreme first)?
If price prints a new low that ls further than 20 pips away from the daily open it's likely that price is going to continue breaking out and making new lows
Try not to THINK too hard or you'll end up in Yale.
Trade what YOU SEE!
What I SEE personally is that price within the daily context or the weekly context, using the open as reference is either breaking out/expanding or retracing and there's often 2 ideal entries per period.
At the beginning of a time period (where high, low and open are all the same price, and 20 pips from the extreme is 'inverted' ...anyone noticed that one yet with the rat indi at the daily open??, it's correct btw) price has to break out one way or the other, and after a certain period (at price extremes) will often but not always come back.
I've seen something quite interesting within the weekly context and price crossing a 20-25 pip line and continuing in that direction for a considerable distance: SEE which way price is moving and trade that direction - exactly what you used to show with hourly bars crossing a line TRO.
Stupidly simple trading that actually works more often than not, trading 1 candle (i.e. only 1 or two trades per week usually), using z-lines and suchlike for targets/exits.