Dear Friends,
Do not be too happy with yesterday's upturn of 189.73 points. The Dow's Close at 9180.69 represents an Inside Day for Thursday, with Wednesday's Candle covering the whole range of Thursday's trading range. Coupled with the higher Low and higher High on Wednesday compared to Tuesday's Green Marubozu, and we have the Classic Toby Crabel NR4 Setup.
Based on my research, Toby Crabel was a prodigy of Victor Niederhoffer, and part of the Soros' Quantum Fund team. However, he eventually struck out on his own, and formulated his own Day Trading System. He became a billionaire as a result of his NR4 and NR7 System. This was in the 1990s.
At this stage, we have to perform one calculation before we can make the trading decision. We need to calculate the mid range of the Inside Day Candle, i.e. the High minus 50% of the difference between the High and the Low.
Thus, Mid Range = 9121.67 [9266.47 - 50% x (9266.47 - 8976.87)].
The Key now is today's Dow Open. If Dow Opens below the Mid Range of the Inside Candle, i.e. below 9121, then it is a Sell Order. Unfortunately, this is only a Sell Order, and there is no corresponding Buy Order to this setup, and thus, if you have a choice (profit), my opinion is to take it.
Again, there is no guarantee of success, but Toby Crabel disclosed that during his test period, he had a 80% winning percentage.
My advice - Don't argue with a billionaire who made his fortune as a trader by inventing and using the NR4 Trading System.
Frankly, I am no expert and I don't trade such Day Trading Patterns, although I have actually read quite a substantial part of his actual research work on NR4, NR7 etc. from his book., which costs US$900 for a second hand copy, on Amazon.Com. However, if I had a Long Position, I would get out. Better be safe than sorry.
May you be successful with this trade
I would state one of my favorite phrases here -
Dreams - It is good to build castles in the sky, but start working on the foundation. NOW!
Today's blog shows how important it is to do your research and develop the necessary competencies before you speculate (trade) in the financial markets. Luck favors the prepared.
Lastly, please be reminded on the Liability Exclusion Clause, which is at the top of my blog page, i.e. that the final trading decision is yours, and I will not be responsible or liable for any losses you may incur from whatsoever reason. :)
Best wishes,
Ooi
© Copyright of Praesciens.blogspot.com, 2008
Do not be too happy with yesterday's upturn of 189.73 points. The Dow's Close at 9180.69 represents an Inside Day for Thursday, with Wednesday's Candle covering the whole range of Thursday's trading range. Coupled with the higher Low and higher High on Wednesday compared to Tuesday's Green Marubozu, and we have the Classic Toby Crabel NR4 Setup.
Based on my research, Toby Crabel was a prodigy of Victor Niederhoffer, and part of the Soros' Quantum Fund team. However, he eventually struck out on his own, and formulated his own Day Trading System. He became a billionaire as a result of his NR4 and NR7 System. This was in the 1990s.
At this stage, we have to perform one calculation before we can make the trading decision. We need to calculate the mid range of the Inside Day Candle, i.e. the High minus 50% of the difference between the High and the Low.
Thus, Mid Range = 9121.67 [9266.47 - 50% x (9266.47 - 8976.87)].
The Key now is today's Dow Open. If Dow Opens below the Mid Range of the Inside Candle, i.e. below 9121, then it is a Sell Order. Unfortunately, this is only a Sell Order, and there is no corresponding Buy Order to this setup, and thus, if you have a choice (profit), my opinion is to take it.
Again, there is no guarantee of success, but Toby Crabel disclosed that during his test period, he had a 80% winning percentage.
My advice - Don't argue with a billionaire who made his fortune as a trader by inventing and using the NR4 Trading System.
Frankly, I am no expert and I don't trade such Day Trading Patterns, although I have actually read quite a substantial part of his actual research work on NR4, NR7 etc. from his book., which costs US$900 for a second hand copy, on Amazon.Com. However, if I had a Long Position, I would get out. Better be safe than sorry.
May you be successful with this trade
I would state one of my favorite phrases here -
Dreams - It is good to build castles in the sky, but start working on the foundation. NOW!
Today's blog shows how important it is to do your research and develop the necessary competencies before you speculate (trade) in the financial markets. Luck favors the prepared.
Lastly, please be reminded on the Liability Exclusion Clause, which is at the top of my blog page, i.e. that the final trading decision is yours, and I will not be responsible or liable for any losses you may incur from whatsoever reason. :)
Best wishes,
Ooi
© Copyright of Praesciens.blogspot.com, 2008
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1 comment:
ooi- dont worry neely too saw something dissapointing within the mkt- told them to get out at930 s&p last night- he said because it didnt get to 1050 by yesterday he sees us testing the lows again within 1-2 months, Atilla our xtrends guy aslo sold & went short but lking at 900 support within the next 1-2 days,but then sees a rebound- hopefully strong.
anyway thanks 4 the heads up.took some positions off the table earlier today.
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