Taking off the blindfold

If you don't know where to start, start here! Don't be afraid to ask questions.

Moderator: moderators

User avatar
BlindMan
rank: <50 posts
rank: <50 posts
Posts: 32
Joined: Thu Dec 20, 2018 10:01 am
Reputation: 29
Gender: None specified

Re: Taking off the blindfold

Postby BlindMan » Fri Dec 21, 2018 2:39 pm

LeMercenaire wrote:Welcome aboard. It's actually a good time to do so, as the holidays are steaming in fast, so time to read as much as possible and trade as little as possible, lol.

Happy to tag along and do what I can to help you on your journey, if I can.

Once the NY kicks in, I'll get myself back up to full speed but any questions, ask away, as I will still be popping in pretty much every day.


Hey, thanks for posting Lem! I appreciate it.

Mira wrote:If price made a HH then it’s going up to me.
Then you have a pullback, it tends to happen at the breakout line, at the 50% of the move or at the 0%/demand level/zline.
After in the trade every opposite S/R is a decision point: take profits or not?

How do i trade it: i go down by one or two timeframes and I wait for a smaller setup away from my line.
The smaller setup offers me a line too, I’m going to use this last “smaller” line to open/close the trade.

C49C1989-CFC1-4416-ACF0-DD62E8A7D4E8.jpeg


Thanks. I don't want to get too caught up in the possible trades just yet, but this is useful. Having someone that uses zlines helps. I never tried to draw them, maybe because I never really understood them #-o. I'd like to though.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
Mira
rank: 1000+ posts
rank: 1000+ posts
Posts: 1595
Joined: Thu Nov 10, 2016 8:37 pm
Reputation: 1531
Gender: Male

Re: Taking off the blindfold

Postby Mira » Fri Dec 21, 2018 3:28 pm

BlindMan wrote:If I look at one timeframe, it can display something very different.

H1
whatdoisee13.png
M5
whatdoisee16.png

But the only reason it looks different is because I'm just looking at less time. It did the same thing, but it's only showing this part of the H1 chart:
whatdoisee17.png

It's just giving a more detailed look.

Because price is the same on all timeframes.

whatdoisee13.png
whatdoisee14.png
whatdoisee15.png

But if price is the same on all timeframes, why do we need multiple timeframes? Well, zooming out that much might not be practical, and looking at charts might give us clues on what price is doing. If we base a trading decision on what we see on the chart, it'd make sense to use that timeframe as a "framework" of reference to work with. For example, I don't think I'd make a long term decision based on a 5 minute chart that's only showing me 100 bars.


Price is the same on all the timeframes but charts are fractals, that gives you a clue.
You trade “the small” in direction of “the big”.
Like Lem, who waits for a S/D on H1 and then a S/D on 5m or Dragon33 trading a 15m momo in direction of H4 momo.

I’m not a pro as these guys, however I see several advantages using this multi timeframe analysis:

- you have a faster view of the market
- you can fix the position size based on the smaller pattern
- you can use a larger stop loss without using a LARGE stop loss
- a moderate reaction on the big tf could be a good profit on the lower tf
- you could have bought a ticket for a long term trade (cit. MO)
__________ THE :smt096 IS A LIE__________

User avatar
LeMercenaire
rank: 1000+ posts
rank: 1000+ posts
Posts: 2344
Joined: Tue Sep 27, 2016 12:11 am
Reputation: 1760
Gender: None specified

Re: Taking off the blindfold

Postby LeMercenaire » Fri Dec 21, 2018 4:16 pm

BlindMan wrote:
LeMercenaire wrote:Welcome aboard. It's actually a good time to do so, as the holidays are steaming in fast, so time to read as much as possible and trade as little as possible, lol.

Happy to tag along and do what I can to help you on your journey, if I can.

Once the NY kicks in, I'll get myself back up to full speed but any questions, ask away, as I will still be popping in pretty much every day.


Hey, thanks for posting Lem! I appreciate it.

Mira wrote:If price made a HH then it’s going up to me.
Then you have a pullback, it tends to happen at the breakout line, at the 50% of the move or at the 0%/demand level/zline.
After in the trade every opposite S/R is a decision point: take profits or not?

How do i trade it: i go down by one or two timeframes and I wait for a smaller setup away from my line.
The smaller setup offers me a line too, I’m going to use this last “smaller” line to open/close the trade.

C49C1989-CFC1-4416-ACF0-DD62E8A7D4E8.jpeg


Thanks. I don't want to get too caught up in the possible trades just yet, but this is useful. Having someone that uses zlines helps. I never tried to draw them, maybe because I never really understood them #-o. I'd like to though.


Try this simplified definition of Z-Lines I use - it isn't the only way but it works for me.

We are looking for a momo move through a level or zone from sometime in the past. Once we get that move, the Z-line is extended from that level into the future, passing through the mono candle / move.

We then wait for price to retrace back to that level and either test, close over and continue on...or test, fail to close over and rebound.

The latter is the classic Z-Line move and used in combination with a 50% retrace fib level, you get a beautiful killing zone for entries.

User avatar
BlindMan
rank: <50 posts
rank: <50 posts
Posts: 32
Joined: Thu Dec 20, 2018 10:01 am
Reputation: 29
Gender: None specified

Re: Taking off the blindfold

Postby BlindMan » Fri Dec 21, 2018 7:40 pm

These are from the same pair, scrolling back through the H1. I'm trying not to be selective and "cheat" to see if it came back to the line or not. I just look for a candle or series of candles that are bigger (in comparison to the rest), pushing in one direction. Trying to identify momentum and start plotting what I think are zlines. Maybe I'm terribly mistaken.

I use the previous candle to the move as reference, so that I can see where it broke out from.

1.png
1.png (52.75 KiB) Viewed 888 times

2.png
2.png (50.8 KiB) Viewed 888 times

3.png
3.png (43.06 KiB) Viewed 888 times

4.png
4.png (53.11 KiB) Viewed 888 times

5.png
5.png (42.92 KiB) Viewed 888 times

6.png
6.png (59.11 KiB) Viewed 888 times

7.png
7.png (70.4 KiB) Viewed 888 times

8.png
8.png (43.01 KiB) Viewed 888 times


After posting this I realize I could've marked a few more. Some are from larger moves, and others are from smaller ones. I don't know if a bigger move makes a stronger level.

User avatar
BlindMan
rank: <50 posts
rank: <50 posts
Posts: 32
Joined: Thu Dec 20, 2018 10:01 am
Reputation: 29
Gender: None specified

Re: Taking off the blindfold

Postby BlindMan » Fri Dec 21, 2018 7:51 pm

It usually bounces off the level where the momentum started, and then keeps going in the same direction of the initial momentum. This can be:
1) By a wick touching or going through the line.
2) A candle close below, and then a candle close above the line.

These are from bullish momentums but for no particular reason. Well, the thing is, every time I looked at a prolonged move in the same direction, there was usually one in the opposite direction before it :roll:.

I'm starting to see how I could maybe trade off these lines. Trading towards them (fading them?) might be possible too.

LeMercenaire wrote:The latter is the classic Z-Line move and used in combination with a 50% retrace fib level, you get a beautiful killing zone for entries.


You mean, wait for the 50%~ retrace, and then trade towards the zline? I kinda like the concept of trading towards the line because it gives me a target idea to shoot for, and well, because I've always been bad at exits. I never traded with a target idea in mind and I didn't know how to let trades run. I used to go for a fixed +5 or similar and that was ok to compensate for the bad trades, but at the end of the day I was usually at break even. So maybe something like this could help me.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
BlindMan
rank: <50 posts
rank: <50 posts
Posts: 32
Joined: Thu Dec 20, 2018 10:01 am
Reputation: 29
Gender: None specified

Re: Taking off the blindfold

Postby BlindMan » Fri Dec 21, 2018 8:20 pm

Just a random note out here. I don't want to spam (sorry!) but these are going to be my notes as well.

It might be better to wait for a retrace to have some sort of confirmation that the momentum might have ended. Otherwise I'll be chasing tops and bottoms that might not happen at the time.

If the idea for the trade is to trade towards the zline anyway, I can afford waiting for a retrace, and if it doesn't go my way I can close the position because that means that the idea that I had in mind wasn't working out. Or I could dip my feet into the water by starting with smaller size, more "room" and adding as the trade starts working out (never did this, but worth pointing it out).

tom7ak
rank: 50+ posts
rank: 50+ posts
Posts: 103
Joined: Fri Dec 05, 2014 11:10 pm
Reputation: 157
Gender: None specified

Re: Taking off the blindfold

Postby tom7ak » Mon Dec 24, 2018 12:41 am

what is momentum? where does it start? is breakout momentum?

tom7ak
rank: 50+ posts
rank: 50+ posts
Posts: 103
Joined: Fri Dec 05, 2014 11:10 pm
Reputation: 157
Gender: None specified

Re: Taking off the blindfold

Postby tom7ak » Mon Dec 24, 2018 12:59 am

ByOrSl.png
ByOrSl.png (32.56 KiB) Viewed 774 times


Would you buy or sell there? Why and where?

User avatar
BlindMan
rank: <50 posts
rank: <50 posts
Posts: 32
Joined: Thu Dec 20, 2018 10:01 am
Reputation: 29
Gender: None specified

Re: Taking off the blindfold

Postby BlindMan » Mon Dec 24, 2018 6:02 am

tom7ak wrote:what is momentum? where does it start? is breakout momentum?

The way I see momentum, is a fast and strong move in one direction (relative to the previous movement). It could be a breakout, depending on what level it's breaking out from. A major level? A previous high / low, a previous bar high / low? It depends I guess on how you look at the chart.

tom7ak wrote:ByOrSl.png

Would you buy or sell there? Why and where?


answer.png
answer.png (45.19 KiB) Viewed 762 times


Kinda playing a "where did come from and were did it go" idea. That's what I'd do (maybe :roll: ). At the area you marked, there was a wick that touched the line, then reversed (at the point where I would've exited the trade, fading the line). I don't see a clear entry to short or long from there to be honest. Again, this is a beginner's chart reading, so any inputs are appreciated.

There's also a strong move to the downside at the beginning of the chart, so I'd like to scroll a bit further back as well :shock: .

User avatar
LeMercenaire
rank: 1000+ posts
rank: 1000+ posts
Posts: 2344
Joined: Tue Sep 27, 2016 12:11 am
Reputation: 1760
Gender: None specified

Re: Taking off the blindfold

Postby LeMercenaire » Mon Dec 24, 2018 5:09 pm

tom7ak wrote:what is momentum? where does it start? is breakout momentum?

Momentum can lead to a breakout but not every breakout is a result of momentum.

Some breakouts can move at the speed of a glacier grinding uphill.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.


Return to “beginners forum”