TRO BUY ZONE - KEEP IT SIMPLE

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TheRumpledOne
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Postby TheRumpledOne » Mon Jun 18, 2007 2:42 pm

pipette4x wrote:
TheRumpledOne wrote:Hey BP:

It's simple... for AAPL, you plot one horizontal line .10 above the open and another .20 above the open... that is the LONG ZONE.

Then you plot one horizontal line .10 below the open and another .20 below the open... that is the SHORT ZONE.

Trading rules are simple.

1) You go long when the chart price candle is GREEN and is in the LONG ZONE and the 60 minute candle is GREEN

2) You go short when the chart price candle RED and is in the SHORT ZONE and the 60 minute candle is RED.

I use this on a 1 minute chart the first 15 minutes after the open and then switch to a 5 minute chart.

Rule of thumb while trading... NEVER GO SHORT ABOVE THE OPEN OR LONG BELOW THE OPEN. If you stick to the zones, this is not a problem.

But traders are tempted to trade outside the zones.

Stop loss - If the price crosses the open against you, it's time to give it up!

The most you should lose is a dime.

This method on a bad day, wins about 60% of the time. Once you get the hang of it, you'll be in the 80% or higher range.. that's right, 4 out of 5 winning trades.

Apply the money management matrix to this and you'll see you can rake it in!!

Yes, this works for other stocks, too. I posted my herd of cows - the top 20 stocks to trade. But, if all you trade is 1000 shares of AAPL each trade you should clear $400 or more in 30 - 60 minutes everyday. By focusing all of you attention on ONE STOCK, you should never miss a trade. But the minute you take your eye off AAPL, it'll be the time it pops and you would have missed it!

Anyone for AAPL juice?


hi TRO

I've read your explanation of the buy zone and, no surprise, i'm a little confused. i trade the forex market so i'll use an example to see if i get this.

the 7am est 1 hour candle on the cable is bearish so only look for a sell signal in the sell zone, which is 3-4 pips from the open price at 8am. once prce penetrates the sell zone, sell, using the open price as the s/l

I'm not sure how many pips you look for with this method? what criteria do you use to exit?

also, you mention that you drop down to the 1 min chart for the first 15 min then switch to a 5 min chart. i'm not sure why you need to switch away from a 60 min chart since the entry is based on price? how do you use the 1 min and 5 min.

So this method applies just the NY open? i can also interpret this to mean that you can apply this every hour based on the previous candle's color

I really appreciate an insight you can provide.

Pipette



"also, you mention that you drop down to the 1 min chart for the first 15 min then switch to a 5 min chart. i'm not sure why you need to switch away from a 60 min chart since the entry is based on price? how do you use the 1 min and 5 min. "

That is for STOCKS!!


"I'm not sure how many pips you look for with this method? what criteria do you use to exit?"

The target is 6 gross pips but I'll take as little as 2 gross pips or bail if the trade stops moving.


"the 7am est 1 hour candle on the cable is bearish so only look for a sell signal in the sell zone, which is 3-4 pips from the open price at 8am. once prce penetrates the sell zone, sell, using the open price as the s/l"

The focus is on the CURRENT CANDLE for entry. I am not sure why so many people keep asking about the previous candle and waiting for candles to close... did I type that in a BUYZONE thread somewhere?


"So this method applies just the NY open? i can also interpret this to mean that you can apply this every hour based on the previous candle's color"

The BuyZone applies to ANY FOREX market open - London, NY, Sydney, Frankfort, Tokyo, etc...
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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Postby MR01 » Tue Jun 19, 2007 2:48 am



TRO, the image is the hourly chart USDCHF & the crosshair is set just to the right of the opening bar for the NY open (22:00 AEST is 8am NY time) so my short entry on the 12th was on the first bar to the left of the crosshair. I was using the 5 min chart

Thanks again

Mark

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Postby jm1111 » Tue Jun 19, 2007 9:43 am

I tried to put the buy zones on my chart using the first hour code and the zones never showed up. I wonder why?

[/quote]

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Postby TheRumpledOne » Tue Jun 19, 2007 4:43 pm

MR01 wrote:
TRO, the image is the hourly chart USDCHF & the crosshair is set just to the right of the opening bar for the NY open (22:00 AEST is 8am NY time) so my short entry on the 12th was on the first bar to the left of the crosshair. I was using the 5 min chart

Thanks again

Mark


1) Where's the buyzone??

2) I need CANDLES... RED/GREEN!!
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby MR01 » Wed Jun 20, 2007 3:34 am



TRO - i can only get the hourly from work using Oanda, I've marked the entry bar & the buy zone. You're right, it would've made a nice reversal given it cam back so quickly to the long Buy Zone

Thanks

Mark

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Postby jm1111 » Wed Jun 20, 2007 5:09 am

TRO,
I guess I am asking if there is a way to plot the buy zone and the sell zone horizontal lines from the 60 minute chart on my one minute chart since I use a one minute chart for entry. I never was good at overlaying data from one chart using a hidden symbol.
Thanks,
JM1111

TheRumpledOne wrote:
MR01 wrote:
TRO, the image is the hourly chart USDCHF & the crosshair is set just to the right of the opening bar for the NY open (22:00 AEST is 8am NY time) so my short entry on the 12th was on the first bar to the left of the crosshair. I was using the 5 min chart

Thanks again

Mark


1) Where's the buyzone??

2) I need CANDLES... RED/GREEN!!

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Postby pineapples » Wed Jun 20, 2007 4:46 pm

Did anyone else catch this BZ trade at the NY open today on the EUR/USD?


Image


I've been doing some testing and I find the BZ can be used at almost any point on the chart where there is movement in the market. Look at this chart before the NY open....case rested.

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Postby pineapples » Wed Jun 20, 2007 4:57 pm

I don't really understand why there is such a fuss about setting up buyzone indicators.

If you can count to three, you can trade the buyzone.

Also, what is so difficult about using a 5 minute chart and seeing what the one hour candle looks like at the same time without having the one hour chart open?
Surely if these simple concepts can't be grasped one would be better off playing slot machines. :roll:

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Postby Ken_S » Thu Jun 21, 2007 2:31 am

TRO, From your post of Sun Jun 10, 2007 8:31 pm where you post the actual code, when I cut and past it into TS8.2 indicator window, upon verification, I get "AddTime" word not recognized. The word "AddTime" appears in the code under "Calculations". Is this version of the code not compatible with 8.2?
Thanks in advance.

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Postby pineapples » Thu Jun 21, 2007 7:24 am

The London eur/usd open today was just too easy:

Image

top line = stop loss
mid line = entry
bottom line = target (6 pips net gain)

The price dropped a further 20 pips in the next ten minutes but I'm happy with the 6 pip gain.

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