TheRumpledOne
6,411 posts
msg #56350
- Ignore TheRumpledOne |
11/2/2007 7:54:05 PM
|
TheRumpledOne
6,411 posts
msg #56351
- Ignore TheRumpledOne
modified |
11/2/2007 7:58:23 PM
Just trade the crossovers.
SImple!
Note, if profithi or profitlo are negative then the price did not cross!!
|
klynn55
747 posts
msg #56353
- Ignore klynn55 |
11/2/2007 8:30:35 PM
TRO: could you explain further? does the open price need to be below and cross and the closing price end above all four. to long , that is , and to short, open higher and close below all four?? Is that it? Again , us non experts need to know. thanks
|
TheRumpledOne
6,411 posts
msg #56401
- Ignore TheRumpledOne
modified |
11/3/2007 2:47:09 PM
"does the open price need to be below and cross and the closing price end above all four. to long , that is , and to short, open higher and close below all four?? Is that it? "
The answer is NO!
This is simple and I mean simple.
Look at a chart with the previous open, previous close, previous high and previous low lines on it. Four HORIZONTAL LINES.
Let's say the price opens BELOW the previous close and ABOVE the previous low.
If the price is going UP and it reaches the previous close you go LONG.
If the price is going DOWN and it reaches the previous low you go SHORT.
Now, after you enter the trade it is either going your way or you are losing money.
If you are making money, when do you exit? If you have 1000 shares and you are up a dime, that's $100 gross profit. Do you take the $100? What if it only took one minute to make $100 do you take it? What if it took an hour, do you take it?
If you are losing money, when do you exit? If you have 1000 shares and you are down a dime, that's $100 gross loss. Do you take the $100 loss? What if it only took one minute to lose $100 do you exit? What if it took an hour, do you exit?
What happens with this method is that you are letting price come to you. Those lines WILL NOT MOVE.
Moving averages are just that, MOVING TARGETS.
What's easier to "hit", a moving target or a stationary target?
Draw those lines on a 1 minute or 5 minute chart and see how many times a day the price crossed those lines AND you would have had the opportunity to take profit. That's all you want is the OPPORTUNITY to be profitable. Then, and only then, you can take profit because the market is not going to give it to you.
Column lgclose1 is the potential profit going long at the previous close.
Column lghigh1 is the potential profit going long at the previous high.
Column lglow1 is the potential profit going long at the previous low.
Column lgclose1 is the potential profit going long at the previous close.
I JUST SHOWED YOU THE MONEY!!
|
TheRumpledOne
6,411 posts
msg #56404
- Ignore TheRumpledOne
modified |
11/3/2007 3:36:14 PM
Column shclose1 is the potential profit going short at the previous close.
Column shhigh1 is the potential profit going short at the previous high.
Column shlow1 is the potential profit going short at the previous low.
Column shclose1 is the potential profit going short at the previous close.
I JUST SHOWED YOU THE MONEY, AGAIN!!
|
TheRumpledOne
6,411 posts
msg #56406
- Ignore TheRumpledOne |
11/3/2007 3:47:02 PM
What these last two filter displays should show and convince you is that IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT.
By waiting for the price to come to you, you are not chasing the price.
For the record, using the Buy Zone aka MILKING THE COWS, is much more profitable because you are getting in at/near the open price, at/near the open and taking advantage of the ranging nature of certain stocks.
|
TheRumpledOne
6,411 posts
msg #56408
- Ignore TheRumpledOne
modified |
11/3/2007 4:04:52 PM
Using 1 week ago, instead of 1 day ago. You can still make money.
ARE YOU CONVINCED?
|
SFMc01
358 posts
msg #56415
- Ignore SFMc01 |
11/4/2007 7:10:27 PM
TRO: You write, "Let's say the price opens BELOW the previous close and ABOVE the previous low." and you then give some suggestions/rules for what to do next. Thank you. They are excellent.
I would very much appreciate it if you might share any suggestions/rules/guidelines when, "Let's say the price opens ABOVE the previous close."?
Thank you ... Steve
|
TheRumpledOne
6,411 posts
msg #56420
- Ignore TheRumpledOne |
11/5/2007 12:10:19 AM
"I would very much appreciate it if you might share any suggestions/rules/guidelines when, "Let's say the price opens ABOVE the previous close."? "
I don't know what kind of stocks you trade nor if you are a swing trader or a scalper.
But "fading the gap" is what I would look to do when trading my "cows'.
Then again, I just use my "buy zone". Simple, yet profitable.
|
chetron
2,817 posts
msg #56507
- Ignore chetron |
11/7/2007 6:53:39 AM
another look at lines.
|