About the advanced RS system, Questions about the advanced Rs System

[butter]

Sir, sequel to the clas we had today, i have some questions:

1. On the advanced RS system, as par the entry rules you said price must pull close to the RS lines. how close does this have to be?, specfically, in pips? does it have to pull like say 20pips to the rs line for instance?

2. the macd has what appears like a histogram and 2 lines, how does one trade it with regards to the advance RS system? ie when does one know when to go long or short.

3. what time is most suitable to trading the advanced rs system, in the morning, afternoon, evening? etc

4. you talked about the one box in the macd, can you pls explain it, preferably with charts showing exapmles?

thanks sir,

my last question, isn't about the rs system: (sorry for posting it in the wrong place)

prof, my question is a throwback to the class on risk mgt. you advised us not to risk beyond 3% on our trades. i adpoted 2% as my risk level. my question is:
if i decide to go into 3 trades, does this mean my risk level on each trade would be 0.6%? or 2% per trade?

[damadsuite]

Let me try to answer your questions just the way you listed them:

1. On the advanced RS system, as par the entry rules you said price must pull close to the RS lines. how close does this have to be?, specfically, in pips? does it have to pull like say 20pips to the rs line for instance?

There is no fixed pip value for one to say the market is close to the R-S zone. But if you must use pip value to determine how close a market must get for one to say it is close to an R-S zone, then I would suggest 20-25pips.

2. the macd has what appears like a histogram and 2 lines, how does one trade it with regards to the advance RS system? ie when does one know when to go long or short.

The MACD is a confirming indicator to the advanced R-S system. All other conditions must be satisfied before you look at the MACD. Our emphasis is on the crossing of the lines in the MACD. If the Red line crosses the blue downward, that is a Short Crossing while if the red line crosses the blue from below upward we say that is a Long Cross.

3. what time is most suitable to trading the advanced rs system, in the morning, afternoon, evening? etc

You can trade it anytime. It works best outside news hours. It have better performance as from 5pm - 8am. There is usually little or no news release within this time frame and most technical strategies do best outside news hour. But the advanced R-S system will also give your good profit during regular hours.

prof, my question is a throwback to the class on risk mgt. you advised us not to risk beyond 3% on our trades. i adpoted 2% as my risk level. my question is:
if i decide to go into 3 trades, does this mean my risk level on each trade would be 0.6%? or 2% per trade?

No, you don't need to spread the 1.5% across all your trades. The risk level is per trade. Assuming you like the 1.5% risk level, then if you enter two trades then your total risk will be 3% (1.5+1.5)%.

[butter]

prof,
thanks so much for the replies.
you've cleared up a lot of things for me.