I have been studying this thread: http://www.forexfactory.com/showthread.php?t=605011 {image}
I can see that point.
For those who wonder what the heck a buy zone is: it's trading around the daily open, the only thing price-wise that is known from the start of the day and doesn't change during the day. No prediction required. You ALWAYS know where it is. Think about that for a while.
The rat zone is akin HOLO or 1-2-3: trade a reversal close to the then current daily high or low.
A lot of what is being presented here and elsewhere is about whether or not the market is predictable and up to which point. A bit like the weather, if it rains now I can be pretty sure it rains the next second, and the next second, and the next second, until it doesn't. Try to predict it for next week and you may be way off, depending on the situation now and whatever happens in between. Markets cannot be predicted because if that were the case they would seize to exist the moment that is the case. So whatever model is being used to cast the market, be it complex system theory, wave theory and what have you. it's flawed from the get-go.
Study away folks
PS here's your horizontal lines (or aren't they ?)
It takes courage to grow up and become who you really are - E.E. Cummings
I have another question: Rule: Sell short at the highest H1 open after price goes up through it and comes back down. What If price goes up through the highest H1 open, formed new highest H1 open and comes back down. Do you trade the setup from old highest, or the new highest open actually cancel the setup so I need to wait for new movement (goes up through it and coming back down) before considering an entry? Please see image for more details: {image} Thanks TooSlow!!
knowing the avg daily range is key.
