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Can someone tell me how to interpet this?

Posted: Thu Dec 06, 2007 12:45 am
by camdavis
Can someone tell me how to use the buyzone on AAPL? I inserted the BuyZone as an analysis technique. Am I missing something here? I'm not seeing where this is moving in and out of the buy zone. Thanks

Posted: Thu Dec 06, 2007 1:08 am
by whittakerj
It comes out of the buyzone first thing in the morning...Would have been good for one trade...

Posted: Thu Dec 06, 2007 1:27 am
by TrvlWanderer
dyos wrote:It comes out of the buyzone first thing in the morning...Would have been good for one trade...


You may have caught it with a limit order, but at that time of the day, very, very tricky. Also, the whipsawing in and out of the "zones" in the first 10 minutes would have caused much pain. Not a good day to play the gap either....but experience points against that from pre-open and economic data.

Posted: Thu Dec 06, 2007 2:06 pm
by doctoroe
Is the buy zone method effective at the market open at 9:30 eastern, or does the 8 am premarket open also work?
Thanks

Posted: Thu Dec 06, 2007 4:14 pm
by camdavis
I thought that the price action was supposed to move throught the price zone all day long. Was today an exceptional day? Does the price action move in and out of the buy zone more frequently on the FOREX?

Posted: Thu Dec 06, 2007 4:43 pm
by eudamonia
camdavis,

I see no reason why you couldn't have made money on both the long and short side of the zone. Of course you use limit orders.

I don't personally use the zone on the stock (I use it on the stock market index futures). Works great for me.

Trade it yourself (with small $) until you gain confidence. Give it at least a month (most people quit after 2 losers in a row). Keep your losses small.

Edward

Posted: Thu Dec 06, 2007 4:51 pm
by whittakerj
Avery resets the buy zone every hour for short term trading...so take the open of the hour add .03-.04 subtract .03-.04 that is the zone.

Posted: Thu Dec 06, 2007 5:33 pm
by camdavis
So the Buy zone does not automaticall update every hour on the hour? So you have to manually move the lines every hour on the hour?

Posted: Thu Dec 06, 2007 5:39 pm
by camdavis
Thanks Ed, I'm an ES trader myself. I use fibs as main indicator and am a huge fan of the eminis. So you use the buy zone to trade the Russell? What is your daily point goal on the Russell, if you don't mind? Also, what do you change the inputs to in order to trade the er2?
Thanks ED, Cam

Posted: Thu Dec 06, 2007 9:40 pm
by eudamonia
Cam,

On the ER2 my inputs are +11 ticks to buy -11 ticks to sell. I target a 10 tick profit and a 12 tick stop. Limit in, limit out always. My goal is to make 10 ticks at the open on the Russell. If my first trade is a loser I will look for it to reverse and take the Zone in the other direction if it gets to that price. This setup works about 75% of the time. Good enough for me.

Edward