THE BUY ZONE - TheRumpledOne

Hi TRO,

If it's quick to answer, do you tend to look for ATR (be it hourly or whatever) when you come to press the button on your system? If it's a long winded answer, or you've answered it to death somewhere else then no problem. Our trading styles couldn't be further apart but I am interested in this thread.

Best Regards
Dave
 
Dave:

I don't use ATR.

I use my TRO RANGE indicator. But I use it to manage the exit more so than the entry.

My range indicator tells me the average range over the last X bars ( for me X = 24 ).

I know the USDJPY usually runs about 24 pips per hour.

As I am in the trade my range indicator also tells me how many of the last 24 bars had a range greater than and lesser than the current range. It also tells me how many bars out of the last 24 were above/below average.

So if I enter a trade and am up 4 pips but there's more range left according to my range indicator, I may be more inclined to stay in the trade and grab more pips.

One other price point I look at the is previous 60 min candle's midpoint. To me, if price is above that, then buyers are in control and if below that, sellers are in control. Using that info helps to keep me from getting "whipsawed", since I am inclined to only trade in one direction.

I hope that gives you some insight, Dave.
 

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To me, if price is above that, then buyers are in control and if below that, sellers are in control. Using that info helps to keep me from getting "whipsawed", since I am inclined to only trade in one direction.
-----------------------------------------------

Hi TRO,

I only quoted this little piece above, as it seems we do have some common ground after all! I also only tend to trade in one direction - in fact I think that is the basis of my "aha!" moment in my years of forex trading.

I try to do what everyone else tries to do - take trades in line with the bigger picture. However, for me the bigger picture is not some magic, lagging, moving average - nor some magic, gun-jumping leading oscillator. I spend my time reading up on the fundamentals - things that move the market over days and weeks.

I only take trades in line with my belief in the fundamentals - until they change or (as is more usual) become undecided.

I find it fascinating that despite our wildly different time frames, we can distill down to some common ground.

Thanks for the insight.

Regards,
Dave
 
Last edited:
Time frame is only for measurement.

I look at 60 minute charts most of the time and look at day's worth of bars as you can see above.

I want to be "ignorant" of things like fundamentals because the chart tells me all I need to know. I don't want to think or be biased when I trade. I want to be able to objectively assess which way the price is moving and that is all. Just a couple of accurate assessments (aka guesses) per day is all I need.

You're welcome, Dave.
 
"I reset the Buy Zone at the start of the hour."

Hi, Avery. You mentioned in an earlier post that you " .. reset the Buy Zone at the start of the hour". How do you do this, exactly?
 
THE BUY ZONE FOR FOREX MANUAL - B2B

3_BuyZoneForDummies_1.png


THE BUY ZONE FOR FOREX MANUAL - BACK TO BASICS

This should help the struggling Buy Zone traders.
 

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DM3554 said:
Hi, Avery. You mentioned in an earlier post that you " .. reset the Buy Zone at the start of the hour". How do you do this, exactly?
Click to expand...

The is a MT4 version of the Buy Zone that does this automatically.

The eSignal version requires you to reset it manually by changing the start time.
 
2wc4s2b.gif


It didn't surprise me that the last bar was green.

Why?

Because STATISTICALLY last half hour BEFORE rollover the price goes up.

SHORTS want to cover and avoid interest.
 
Got this in a email from a fellow trader today....

More stats based on your CC_STATS....

Columns are you CandleColor counts followed by theses counts:
Made TP in red direction
Made SL in red direction
BuyZone fakeout (went 3 pips red, but did not go on to TP)
Previous bar alerted to sell using your TRO_3 indicator (preceded by 3 green bars)
Made TP after buzzard alert.

Next set of columns are the same data for long.

The interesting ones -- where the Buzzard Alert worked 100% of the time
are flagged with <=!!.

An example on the attached USDCAD chart shows 960 bars of data (40 days)
and a buzzard alert after teh 15:00 hour 13 times -- all 13 of which
produced profit. And regardless of the buzzard, there were only 3
buy zone fakeouts. Statistically significant, I'd say.
Click to expand...

6pq2p0.png
 
Hello again Avery, am studying your Buyzone - would you please explain how I can use your buyzone, price, range and Trosak multipair to help me trade the Buyzone. I understand trading at UK, Ny and Asian opening times is good - I am quite confident at which times to trade. I understand also that we are looking for a pair with a decent hourly range. Hence my previous question ref time stats. Anyone else who understands, please feel free to reply. Much appreciated. Thanks.zipster31
 
zipster31 said:
Hello again Avery, am studying your Buyzone - would you please explain how I can use your buyzone, price, range and Trosak multipair to help me trade the Buyzone. I understand trading at UK, Ny and Asian opening times is good - I am quite confident at which times to trade. I understand also that we are looking for a pair with a decent hourly range. Hence my previous question ref time stats. Anyone else who understands, please feel free to reply. Much appreciated. Thanks.zipster31
Click to expand...

Google: therumpledone buyzone

Read all the BuyZone threads on the other forums.
 
As I understand it ..... please correct me if im wrong as I would like to start trading using this strategy.

1. look at the opening price of the candle in that hour
2. add 0003 - 0004 to the price (LONG/blue line)
3. subtract 0003 - 0004 to the price (SHORT/red line)
4. trade long in the buy zone on the blue line if the candle is green
5. trade short in the buy zone on the red line if the candle is yellow

Q i) please confirm this is correct
Q ii) please also confirm if this works best on the 5minute time frame
Qiii) you have to move the buy zone according to the opening price every hour
 
As I understand it ..... please correct me if im wrong as I would like to start trading using this strategy.

1. look at the opening price of the candle in that hour
2. add 0003 - 0004 to the price (LONG/blue line)
3. subtract 0003 - 0004 to the price (SHORT/red line)
4. trade long in the buy zone on the blue line if the candle is green
5. trade short in the buy zone on the red line if the candle is yellow

Q i) please confirm this is correct

Yes, if yellow are down (bear) candles.

Q ii) please also confirm if this works best on the 5minute time frame

No. Time frame doesn't matter.. price is the same on all time frames.

Qiii) you have to move the buy zone according to the opening price every hour

You can use session open time, the original method, or you can use the hourly open price.
 
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