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...