Valid Mozone?

[LegendofZline]

Hey there guys hope everyone is having a great christmas and a very fantastic new year (in trading). Congrats to all the new traders and old ones that are successful and spreading knowledge

as for me I am still not there...

My question is... After looking through the posts in the lukz thread and nla threads the mozone seems like a very important area to trade away from...

But is all mozones valid when price reaches these areas. Or is it only the most recent formed mozones after the bar closes the only mozone you would find entry in?

1. Say if my largest tf was 4hr when doing my analysis. Am i looking for an entry only at the most recent 4hr mozone that occurs on that tf to be my direction i am going to trade in? IN THE PICTURE ITS THE BLUE ARROW

Or 2. Can a mozone in the 4hr tf that has happened 4 weeks ago be a valid mozone still... ie... when price shoots through recent mozone closes over it. But then price is in the past mozone is that mozone valid to take if zlines are being wicked? IN THE PICTURE THEY ARE THE BLACK ARROWS
Hope this translates well...! hard to explain

Anything to help straighten this out for me would be great...

Thanks Again guys and gals

-loz

[Jalarupa]

I wrote such a long and nice reply to this post, then Windows decided to update and killed my browser...

I'm not going to go into as much detail again because technically I have already spent 30 minutes on this reply...

I will say this... and It echo's what MO has said many times in the past... LOSE THE INDICATOR

Why...? Because its Not a TRUE and ACCURATE indication of the WHOLE STORY

https://www.tradingview.com/x/HGRJhlfV/

Above we have two example of when the indicator would have screwed us...

https://www.tradingview.com/x/mj0uosij/

Looking far left we can see why... LONG TERM HUGE EXTREME OR LARGE LEVELS OF SUPPLY AND DEMAND and CONING PA that Grew into These LONG TERM LEVELS on a LARGER SCALE... YOU CAN'T SEE THIS on YOUR SCREEN... Because you blinded by all the RED AND GREEN crap floating on top of it...

Next you wanted to look at current PA...

https://www.tradingview.com/x/Ks6jZ10E/

Yes the Levels are looking good... So sure this level is a area of Supply... NOT ONLY because of the MZone... BUT there are Zlines in there too! (NOT ZLINES DRAWN BY A INDICATOR, BUT BY YOUR BRAIN and in the PROPER CONTEXT of where we are in the BIG/BIGGER PICTURE


HOWEVER BEFORE YOU REJOICE and start SHORTING THE s**t OUT OF SOMETHING THAT MAY OR MAY NOT BE... LOOK LEFT

https://www.tradingview.com/x/cV4z2UaB/

So yes we can see that we are coming off of a FORMIDABLE area of DEMAND (now that was powerful SUPPLY 6 months ago)

BUT we also see that we are in a Triangle... and PA like to bounce around in a Triangle... SO best you TAKE NOTE of these things before you trade.

Study the WHOLE PICTURE...

https://www.tradingview.com/x/qjmUFXcC/

As you can SEE CLEARLY... By being more selective with price levels on the LARGE TIME FRAME or A LARGER TIME SCALE we can skew the odds more strongly in our favour... So I guess what I'm trying to say is... Drop the indicators start getting creative in your analysis and cherry pick your trades based on the BIG PICTURE... Then you will have a successful 2015...

All the best to you on your travels... please excuse the capital letters, I'm shouting only because it feels like I've already said all of this before (which I had, but you never got to hear the sweet friendly step by step version and had to settle for the "IF I HAVE TO TELL YOU ONE MORE TIME I'M GONNA KILL YOU VERSION..." so sorry about that) Blame Microsoft

[LegendofZline]

Thanks for the reply. Im pretty sure it was all for best intentions. But that reply to my question is way over my heads. I can't comprehend anything that is trying to be displayed or apply anything that was said because I don't see anything answering my question?

Sorry for the lack of knowledge but is there a way to explain how you drew your lines as supply and demand
I can take a look at the left of charts and find multiple lines that mimic your lines but not close enough to find a consistent way of drawing those lines.

Also if anybody would like to answer my question in a simple way that I would be great.....


But reading it again all in all.
SO WHAT I DID GET IS YES A 4HR MOZONE STILL MEANS SOMETHING EVEN WHEN ITS 4MONTH OLD.

[Jalarupa]

OKAY SOME BASIC FUNDAMENTALS YOU SHOULD UNDERSTAND >> Pay Attention Now

You need to understand first and foremost that Supply and Demand are a function of PRICE...

At a low price demand is high and at a high price demand is low... Such a low demand creates an excess of supply and then price must drop from that high price level until you find a willing buyer at a lower price...

This above phenomena of real world pricing psychology is very wonderfully represented on a chart and one can PRACTICALLY SEE these levels because they are places where Demand over powers Supply and Vice Versa and price gradually moves in the opposite direction...

Now because TIME is a FRACTAL (http://fractalfoundation.org/resources/ ... -fractals/) we see this directional change phenomena on ALL time frames and it LOOKS the same or simular to all time frames... Get it?

https://www.tradingview.com/x/mej6ZTZK/ - D1 Chart Fractal

https://www.tradingview.com/x/pKq1q3Pd/ - M30 Chart Fractal

Now with the Supply and Demand Levels

https://www.tradingview.com/x/28mNSGaw/ - D1 Levels

https://www.tradingview.com/x/G6zTKN1b/ - M30 Levels

https://www.tradingview.com/x/TkreYGTj/ - H4 Levels Showing Levels Within Levels

Okay so now that you understand what it looks like when Demand Over Powers Supply and Vice Versa, you can now begin to plot a path forward in time...

So let's look at the EJ 30 Minute Zoomed out into Fractal Mode to SEE the Supply and Demand Levels

https://www.tradingview.com/x/QwLu0hoa/

Can you see how SIMPLE THIS IS?

Now Let's Zoom in and Focus on the H4 like you did before...

https://www.tradingview.com/x/wnfHpZza/

You can see the SCALE is the same, BUT the picture looks different...

What this now does is enable us to NOTE and REMEMBER THE LEVELS WHERE DEMAND AND SUPPLY Historically Sit

NOW IF YOU ARE INTERESTED IN THE MIGHTYZONES Drop a Few 50% FIB retracements on the Last MOMENTUM MOVES.... Remember that my H4 candle is Different to your H4 candle because of Broker Time Zone and Market Hours (so best to use something called SPACIAL INTELLECT - Which was discussed in NLA) This 50% level will give us a FEEL for where price may get exhausted on the way back up...

https://www.tradingview.com/x/Xw3Uts2V/

NOW YOU CAN SEE that just by usiong Horizontal Lines you can create a great idea of Price Suppression and if that supperssion gets broken then Pull back to Previous Suppressed area and (ZLINE) continuation in the direction of the Breakout... Like So....

https://www.tradingview.com/x/RXtquiyv/

This may look a bit confusing but if we use SPACIAL INTELLECT and Go up to the WEEKLY CHART then you might see what I mean...

https://www.tradingview.com/x/OQnjW8pL/

Just so you can see where the level comes from...

https://www.tradingview.com/x/up1SbyNx/

Now more zoomed in - Can you see that it looks simular to a Zline / MightyZone Trade? This is because of the Fractal Nature of Time and the Price Dynamics of Supply and Demand...

Hopefully you can now SEE why I said you need to place your trades in the correct CONTEXT of where they are in the LARGER SCALE which can either be represented by a larger Timeframe or a smaller timeframe in "fractal mode" or zooomed out...

In other words Do not short into an area of LONG TERM DEMAND... Because YOU WILL LOSE... Its as simple as saying that you want to pay less for something that is already trading at a discount and the counterparty to your trade is saying No its too cheap already... But you are saying no... I think it can be even cheaper... and then you know what happens? You get a margin call

That simple

https://dwq4do82y8xi7.cloudfront.net/x/mEWngMJr/

Do you want to be selling at these price levels? You could, but you'll probably get screwed in the long run....

https://www.tradingview.com/x/aM1DuuqH/

I hope this is starting to create an AHA! moment for you... Because I can't make it much clearer than this...

[dojirock]

Hi Loz,

We all learn differently, what makes sense from one can be riddles to another. Dont stress about that....
Here are some tips to start with from my perspective.
Please note, I am not a long term trader yet.

Points of interest for me all stem from CC's (color changes)
To find an extreme on any time frame, doesn't one need a high then a lower high? or a low and and a higher low?
Note how price moves sideways at these points.
Draw a LOS line. Use your eyes...opens, highs or lows, closes are all valid areas. 50's 1/3's are also areas.
A LOS line in my mind can be any line you can see on a consistant basis.
Mo zones are too general. My advice, lose the indicator.
Once my LOS line is closed beyond, im in, no questions asked...its a horizontal line in its simplest form.
I see LOS lines going both directions. PRICE CAN ONLY GO UP or DOWN.
My stops are my LOS lines. So when im wrong, am I not right using my other LOS?
Trading is more about MM than anything.
It takes momentum to break momentum.
It takes momentum to profit for some.
It takes momentum to take profit from others.
Can you see zero lines...meaning, price moving from zero line to zero line?
Its a net sum game. For every winner there is a loser.

Do you understand what Im telling you?

You will never trade just like MO, myself, Lukz(lol), or Jal.

Happy new year,
Doji

[dchappy]

I hope young traders are paying attention .The above 2 posts are GOLDEN . Thanks guys ..

[LegendofZline]

at this moment i feel like i am Lukz JR.

ugh... i am dizzy dissapointed depressed confused and tired all at the same time

I think the thing that has to click in my head is broken.

[Jalarupa]

at this moment i feel like i am Lukz JR.

ugh... i am dizzy dissapointed depressed confused and tired all at the same time

I think the thing that has to click in my head is broken.

Hey please do not be so hard on yourself.

You are still very much in your development to becoming the trader you believe that you can be...

I also went through what you are going through when I was 2 years in the game... I have blown accounts and I know many others who have done so also... Its called paying your school fees...

Think about it, no one is a Doctor after 2 years of study... to become a Doctor you need to learn complicated highly technical aspects of life that are so foreign to you and me, its like learning to speak a new language... (http://www.drugs.com/pro/cefpodoxime-proxetil.html) Just read that and see if you have any freaking idea of what is going on about half way down the page...

It takes the average GP (General Practitioner) 7 years to graduate if they pass each year... They then study a further 2/5 years in a specialized field and then they are seen as a specialist, they spend there every waking moment devoted to the idea that they will successfully practice medicine and earn the enormous salary that comes with such a qualification... Yet I find more and more that many Doctor end up hating their jobs and are looking to trading to also escape the long hours...

Now those same highly skilled professional people see trading as an easy thing to do... they expect LIKE WE ALL DID that there is some indicator or system that is out there that just produces money hand over fist.... so much money in fact that one could solve world hunger if they so desired... (would still love to try and do this in some way)... BUT they like we often forget that those who are experienced and versed in the markets have been engaged in its study and analysis for years on end (much like a Doctor does 7-10years or more)... devoted so much time to cracking its code that they deserve the title of Trader...\\

One can't expect to be going at this for a few years and learning to use some indicator or method in isolation and expect things to just fall miraculously into place... because believe me if MightyZones was all there was to it, then we would ALL BE FILTHY STINKING RICH...

MightyZones are very small part of the puzzle and in my humble opinion, and you would be remiss to think that they are the be all and end all of trading... in my journey I have discovered that there is a whole lot more to it and at the end it is as Doji rightfully said above, Money Management is the MOST IMPORTANT PART OF TRADING...

Get that right and you will NOT blow your account... you can be the worst or most unlucky sod in the market and you will still never risk more than 0.5% on any trade and will not add to losers or move your stops,,, ANYONE who has ever blown an account has added to their losers, and moved their stops... The guys that are still around have stopped doing that. We accept the risk we take and are equally disposed to a loss than had we not even gotten into the trade in the first place... Its part of the game... and if you can't handle it or start to sweat profusely when your pip counter goes RED then this is not an industry for you...

SO my advice to you in closing is that you and I have a long way to go still and we must never get complacent or overly confident after a few wins, we must never get rid of the desire and hunger to learn more and improve on our craft. Eventually we may get to that plateau of unconscious competence where making a lot of money in this industry is a breeze and sometimes even a bore... wouldn't that be nice

[seedling]

Nice posting chaps, healthy and successful new year to you all

[aliassmith]

I'll. put my 2 cents in. You blow up your account
when you are risking more than your experience
allows.

From my observations I laugh when I see new traders
risking more than 1% when they trade. It is a bad
move. This is a focus on what you can make, which
is a backwards approach. Traders should focus on
what can be lost first.

At the end of the day, if you can't be net positive $1
with small risk, throwing more money at it wouldn't make you net positive. If you have $5000 in risk
capital, you don't need it in forex to prove yourself.
Deposit less than $500 to prove that you can do it.

Step one find a method that has an edge
Step two find money management that compliments
the method.
Step three practice doing the right things with low
risk
Step four get competent with that one method until
you are net positive and know you know what is
going on.