zero line thread?

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zero line thread?

Postby deltaskelta » Wed Jul 18, 2012 3:30 pm

I've been searching and working my way through many different threads here, but for some reason I can't find the "Zero Line" thread. I keep hearing about it in the posts, but I cannot find it.

Can anyone please point me in the right direction?

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Postby PebbleTrader » Wed Jul 18, 2012 4:02 pm

NLA is I believe where it first started.

It's in a lot of threads, I don't believe there is one that was just dedicated to it.

I'd just use the search tool to help find them...
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Postby PebbleTrader » Wed Jul 18, 2012 4:21 pm

Just visualize held profit getting evaporated...That's the zero line...
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Postby deltaskelta » Wed Jul 18, 2012 5:23 pm

ok, I'm n ot sure which threads are still active, and which threads are going to be dead, so I'll try to just get a few basic things straight in this thread about the ZL.

It seems to me that the basic theory of ZL goes like this:

1. A range breakout occurs
2. People caught the breakout and are holding profit
3. price will make its way back to a BE point, zapping all their profit away from them.

Then, trading the ZL strategy, you would basically be fading range breakouts to get back to the breakout point?

I hope I have got this basic concept right, please let me know if I totally airballed it.

Below is an example of what I believe a ZL trade to be:

Image


Thanks to anyone who responds, I am trying to get through everything on my own, but there is just so much material to go through.

I'm starting to enjoy studying this kind of theory stuff more than actually trading, lol weird.

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Postby PebbleTrader » Wed Jul 18, 2012 5:42 pm

It seems to me that the basic theory of ZL goes like this:

1. A range breakout occurs
2. People caught the breakout and are holding profit
3. price will make its way back to a BE point, zapping all their profit away from them.


That's it!

I guess for me, It's not really something I would all out trade, but more about realizing what's taking place. It's just one of many things to take in...
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Postby deltaskelta » Wed Jul 18, 2012 5:43 pm

EDIT: sorry pebbles didnt see you already responded before posting this one, I guess I was right about what a ZL was

HERE is another one that I may have spotted in progress:

Image

Looks like a ZL, no?

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Postby PebbleTrader » Wed Jul 18, 2012 5:50 pm

Image
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Postby PebbleTrader » Wed Jul 18, 2012 5:52 pm

Don't get caught up in:

"Is this a ZL?"
"Is this a ZL?"
"Is this a ZL?"
"Is this a ZL?"
"Is this a ZL?"
"Is this a ZL?"
"Is this a ZL?"
"Is this a ZL?"

There are many ZL's on any chart you look at, just focus on the few with the most held profit, or look at more compressed data for even more held profit...
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Postby PebbleTrader » Wed Jul 18, 2012 5:55 pm

Image

ZL'd!
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Postby deltaskelta » Wed Jul 18, 2012 5:57 pm

ok so it doesnt necessarily need to be a breakout or anything, just profit still on the table, no matter where it came from.

Gotcha, thanks bro, time to go make some buck

EDIT: An interesting thing I just thought of, technically once you spotted the ZL and took profit from those who still had it on the table, then your position is creating another ZL as well, right?

Because there are other people who bought in your spot, and may be greedy, so your position is likely to get ZL'd as well if you don't take the money.

So the moral of the story is, ZL every sucker you can, and don't let yourself get ZL'd?

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