Buy Sell Zone on the Russell

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zdoc21
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BuyZone, BuyZoneHI, BuyZoneLO inputs.

Postby zdoc21 » Sun Apr 08, 2007 4:38 pm

Hey Ed:

Appreciate your posts.

Can you update your Charts with a Current TS pic as the one posted is hard to read.

Thx
:D

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Postby eudamonia » Mon Apr 09, 2007 3:19 pm

O.k. here was today's gimme trade of the morning. Is this one easy enough to see?


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Postby 4x=0 » Mon Apr 09, 2007 4:28 pm

Ed, you really have outdone yourself with this one.. thank you.



For good measure, here is one of my own trades i took last night:

is it clear to you?


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Postby 4x=0 » Mon Apr 09, 2007 4:47 pm

oh im sorry. that trade wasn't quite finished yet..


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Postby zdoc21 » Mon Apr 09, 2007 5:08 pm

thx Ed

:D

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Postby eudamonia » Mon Apr 09, 2007 7:32 pm

4x=0,

Well I could have shorted at that location on a S/R bounce, however, I was showing an earlier trade that happened right at the open (as per the arrow I had on the screen) that illustrates the Buy/Sell zone. The trade was a sell at 818.8 at 6:32 a.m. PST, two minutes after the open. The profit target was for 5 ticks. In and out - easy.

Also, I'm not at all sure where you entered your trade, can you please explain?

Edward
Eudaimonia (pron.: you-die-moan-e-a) (Greek: εὐδαιμονία) is a classical Greek word commonly translated as 'happiness'. The less subjective "human flourishing" is often preferred as a translation.

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Postby 4x=0 » Mon Apr 09, 2007 8:49 pm

5 ticks ed??! I suppose if you had a 5 tick S/L you make 100%. But wow, 5 pips stop? You do use a stop loss right?

I entered around 1.2220 - 3rd bar from the last. 60 pip gain, typical 15/20/25 pip stop, based on S/R. In that example we are looking at ~300% gain. About.. once, twice, 3 maybe 4 times per week.

Let's stick to and advance on the topic of this thread: Buy Sell Zone on the Russell.

Q: your stop loss?

Q: reason for your 5 pip target?

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Postby eudamonia » Mon Apr 09, 2007 10:08 pm

4x=0

Yes that's correct, 5 ticks. Limit in, limit out. Total roundturn entry/exit cost with commissions is $5 roundturn. This is a scalping method obviously, and is quite a bit different than the swing trade that you did on the EURUSD.

Actually my stop is typically 7 ticks, but that is an emergency stop and rarely hit. I use S/R and time and sales to see when to get out if my target/stop is not reached very quickly. Typically my trades last 30 seconds to 2 minutes. Win ratio is about 80% - that's why I can afford a larger stop than target.

Reason for the 5 tick (pips are for forex) target is that it has a high win ratio, a favorable expectancy, and it makes money nearly every day. That is something that is not typically true with a swing or even longer term day trading method.

I typically only trade this method for the first 2 hours of the day (another advantage for me is not staring at a screen for 8+ hours) and can typically expect to make about 5 ticks on average per day (usually 1-3 trades per morning).

Some people may not understand only taking 5 ticks ($50 per contract) out of the market per day, but if you trade this and make consistent money you can always trade more contracts.

Edward

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Postby 4x=0 » Mon Apr 09, 2007 11:31 pm

Sounds good.

Ed, you trade this method every morning? There must be more buy and sell zones on your chart, or are they generated new every day?

The zones seem to be made of the 2 red lines. Does this mean you short at the top one and exit the bottom one? Or do you short anywhere in between?

Does trading this method with forex work as well?

I appreciate you sharing this method. Unfortunately I do not use any charting that support 3rd party indicators.

Once Justin at EFX group gives the thumbs up to release the new charting package I just may be in luck. That, however, is already way past due. 9 days past due.

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Postby eudamonia » Tue Apr 10, 2007 12:29 am

4x=0

Yes, I've been trading this method consistently for about a month now. However, Avery has been trading this with AAPL and the GBPUSD for much longer (you'd have to ask him).

Yes there are actually 2 blue lines and 2 red lines which form from the opening price of the day. If price enters the "blue zone" with a green (or bullish) 5 min candle you go long, and just the opposite if price enters the "red zone". For the first 5 minutes I use the 1 min candles to determine entry. I typically attempt to hit price right as it enters the zone as that increases my chance of success. With the liquidity of the Russell futures that typically isn't a problem.

Avery trades this method with AAPL and the GBPUSD so if your curious about how it works with Forex I would ask him. According to what he's told me, he makes the majority of his trades based on the buy/sell zone indicators for Forex.

The good news is that this method is so incredibly simple you don't need (although it sure looks cool) the ability to code 3rd party indicators. If you can observe opening price you can trade with the zones.
Eudaimonia (pron.: you-die-moan-e-a) (Greek: εὐδαιμονία) is a classical Greek word commonly translated as 'happiness'. The less subjective "human flourishing" is often preferred as a translation.

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