Ken_S wrote:Thanks Jeff,
"it appears that the first trade that should have been take was the long when it headed up into the buy zone "
Not to beat a dead horse, but the price entered the sell zone first, so why wouldn't you have gone short. Hindsight tells use it just barely entered the sell zone.
The problem is mostly me not keeping stops and/or being greedy. Just trying to come to some firm rules for exits as I think others are too.
The thing about the Buy Zone Indicator is that each person can adapt it to fit his/her own belief about the best place to enter and exit a trade. For example, on the trade we have been discussing, you would have entered when the price touched any area within the short zone. Others may wait until it either closes in or below the short zone. I would take the trade at the point when the price breaks lower out of the short zone. I implied you were wrong in going short and maybe I shouldn't have-the indicator can be used any way you wish. I look at the movement and see the price is just moving sideways and would have waited to see who was going to win the battle ...bulls or bears.....
Additionally, some will not use hard fast rules but "read" the market. For example below is a 25 tick chart of AAPL at 10am on 10-24-07
On this chart you will see that the price is dropping at about a 45 degree angle...then there's a bit of a fight between the bulls and bears at the opening price(red line) I wait to see who wins as it then it moves sideways as the battle rages..... just a few bars and it makes a somewhat distinctive move downward into the short zone and closes in the short zone- I would have shorted there not waiting for it to exit the short zone as I mentioned above. See what I mean? Reading the market...Again - everyone uses this great indicator in a way that is comfortable for them adjusting stops and entries to their liking....
(such a simple concept yet so powerful)
hope this helps