Rule of 10 Journal

[smilingsynic]

For the record, the NQ declined a little over 100 points from the recent swing high (1977.25 to 1876.5). Long in the upper 70's, with a stop at breakeven and a target of 1925.

(trade disregarded, blah, blah, blah. Oh, yeah, wrong board!)

As I made it clear on the ES board, I do not use the rule of 10 intraday, but have little doubt that markets often make moves in multiples of 10 (esp 50 and 100, and higher in the Dow).

 

[volente_00]

Quote from sandygray66:

Volente -

Just an observer here (reading your "discussion" with oldtrader) with a question on using the MAs as a filter. Are you saying NOT to take a r10 long when the fast MA is below the slow MA, and vice versa for short?

It would seem to me that after a r10 move down (i.e. looking to take a counter-trend long looking for a 6-6.5 reversal), the fast MA is always going to be below the slow at that point, and would always prevent an entry if using the MA relationships as a filter.

Perhaps I'm misunderstanding how you use the MA relationships to avoid losers on trend days.

Thanks.

Sandy

For the last time, the smas are never used for an entry. NEVER EVER EVER EVER EVER

They are use to determine a trend or chop day. This will help you determine if you should trail the stop on an existing entry from a r10 signal, or reverse on that r10 signal instead of holding through it.

On the trend examples how many times does they cross from 8 to 12 ?

On the chop, how many times does the red cross the blue to the downside ?



I am looking for divergence. on a trend they will mostly stay parallel, on a chop they will diverge before the crossover materializes.

On a down trend day watch for price to stay under the red line.

On a uptrend watch for price to stay above the blue line.


on a trend day there will be very few sma crossovers, on chop there will be many as like today was.


Are you confused even more now ?

 

[volente_00]

Quote from smilingsynic:

For the record, the NQ declined a little over 100 points from the recent swing high (1977.25 to 1876.5). Long in the upper 70's, with a stop at breakeven and a target of 1925.

(trade disregarded, blah, blah, blah. Oh, yeah, wrong board!)

As I made it clear on the ES board, I do not use the rule of 10 intraday, but have little doubt that markets often make moves in multiples of 10 (esp 50 and 100, and higher in the Dow).

cross correlations ?

Who could have thought ?

 

[Magna]

C'mon guys, this is a good journal, let's keep it friendly and respectful. No name-calling, no childish crapola. Thanks.

 

[Pekelo]

Quote from Pekelo:

Anyway, getting back on topic, overnight 72.5 would be a sell signal, right?

I mentioned this earlier, so let's repeat it again, the R10 works pretty well overnight, because the night is usually less trendy. 72.5 short was an excellent entry and went below 66, with not much heat. (74.5 was the high)

Advice for Jagmot :

Here is how I would "automatize" the overnight trading. Using the afternoon high or low I would put in a limit order (sell 72.5) with a conditional stop loss AND target. The target should be either 3 or 5 points, I wouldn't hope for a full 10 points move. Since I expect this with a win ratio better than 50%, even the 3 pts target should be profitable in the long run.

 

[Pekelo]

Quote from volente_00:

so when bb's are contracting like they were at 1272, how do you decide that that was not a buy? Are you looking at where the williams and rsi level is to choose entries and exits ?

If the 2 consequtive candles (touching the BB) are different colors, I expect a reversal, if same colored, I expect continuation.

I use the RSI for doubletop/bottom. If divergence with the price, I expect it to work, if convergence, I expect it to fail.
I use Williams for both entry and exit unrelated to the BB....

 

[monti1a]

Quote from Magna:

C'mon guys, this is a good journal, let's keep it friendly and respectful. No name-calling, no childish crapola. Thanks.

I agree..this journal is one of the last bastions of hope for ET...let's keep it civil...

 

[Now is Now]

Quote from Pekelo:

If the 2 consequtive candles (touching the BB) are different colors, I expect a reversal, if same colored, I expect continuation.

I use the RSI for doubletop/bottom. If divergence with the price, I expect it to work, if convergence, I expect it to fail.
I use Williams for both entry and exit unrelated to the BB....

Pekelo,

How did your BB do last night to get you out..."my confirmation "came @71.75 on the downslide and would have taken profits @ 67.50 net =4.25 gain.

Only problem was that I would have had to wait approx. 2 hours for my signal

 

[Now is Now]

Based onn " hard 10 " rule we have a sell @ 75.50 s/l 77.50...9-11 74.50 s/l 77.50 and 76.50 s/l 79.50.

 

[Pekelo]

Quote from Now is Now:


How did your BB do last night to get you out..."my confirmation "came @71.75 on the downslide and would have taken profits @ 67.50 net =4.25 gain.

BB doesn't work in slow, grinding markets. Last night I would have taken automaticly the 3 pts gains (because I prefer sleeping), as I advised Jagmot in my earlier post.