ES Journal Archive (2006 - 2008)

[smilingsynic]

Quote from smilingsynic:

Why wouldn't it be 81.25 MINUS 10, or 71.25? Why is it 81.25 PLUS 10, after a ten point positive move?

I think the rule has usefulness, albeit limited. But most rules have little to no use at all, so "limited" is actually a compliment.

R1 is 92.75 (no over night data). Major resistance in mid-90's area.

Rule of 10 suggests low-risk long in 82.75 area.

Buy 82.75, sell around R1, for 10 points.

 

[volente_00]

Quote from smilingsynic:

Why wouldn't it be 81.25 MINUS 10, or 71.25? Why is it 81.25 PLUS 10, after a ten point positive move?

I think the rule has usefulness, albeit limited. But most rules have little to no use at all, so "limited" is actually a compliment.

because the market moved up ?


I can't control the direction




The only time the rule will kill you is on a trend day, the countermoves will only be 2-4 points and it will keep grinding the same direction. That is why you must use strict discipline and risk management.

 

[smilingsynic]

Quote from volente_00:

So you don't see a low of 71 and then a failure at 81.25 ?



You don't see a move from 81.75 to 71 on your chart ?



You don't see the 81 sdupport from last night that broke 10 points to 71 this morning ?



Maybe my charts are wrong

You're using overnight data--I see.

 

[volente_00]

Quote from smilingsynic:

You're using overnight data--I see.

Yes I use overnight, because I trade night moves as well.

maybe that is why you disagree.



The signal also works on cash more often than not as well though.

 

[kinggyppo]

Quote from Stealth Trader:

Same here. It was if someone was reading my mind when they wrote it.

I moved my post to here. I didn't realize this was a journal when I first posted. My apologies for intruding.

http://www.elitetrader.com/vb/showthread.php?s=&postid=1809353#post1809353

Carry on!

st

Come join the party more tape readers needed.

 

[smilingsynic]

Quote from volente_00:

That is why you must use strict discipline and risk management.

This is probably the reason why you've been around for so long. This is a more important "rule" than the rule of 10, imo.

 

[RsX]

Quote from smilingsynic:

This is probably the reason why you've been around for so long. This is a more important "rule" than the rule of 10, imo.

Agreed. The method does not win this game - it's just a trigger for entering/exiting trades. Trade and risk management e.g. defense is the key to winning this game, no matter what the method is.

 

[regal_2012]

impertinent questions:

remember in late 1999 when the NASDAQ doubled in about 12 weeks?what is we doubled now?lets say we go to 2600 by the Elections?the ingredients are there arent they?

remember 1995, when the market went up day after day after day for almost the entire year?what if that happened now?

in the 1950s, there were incredible bull markets that lasted years.Is it possible we are seeing the beginning of those times again?

 

[RichardRimes]

Quote from RsX:

Reached back to the screens just in time to see my MIT order hit and filled at 1385.25, which closed the 1372.75 long with a result of +12.50pts.

It's really amazing when a plan comes together like this.. the market is at times willing to hand out those gifts even when you least expect it..

That was a very nice call...took guts in the face of a very probable down market.

 

[kinggyppo]

long spy 138.45 tight stop