PowerX Strategy "PowerZ"

[BambinoFlex]

Great stuff Igazi. I’ve been digesting your ideas and it has really helped me take my trading to a different level. Still on the 4hr ranges with a daily overview (daily highs-lows). The “z” level, I see it, but what’s the purpose of it? Are you inferring that it’s a weak breakout, lacking momentum?

[IgazI]

Great stuff Igazi. I’ve been digesting your ideas and it has really helped me take my trading to a different level. Still on the 4hr ranges with a daily overview (daily highs-lows). The “z” level, I see it, but what’s the purpose of it? Are you inferring that it’s a weak breakout, lacking momentum?

It is simply another way in which "in" can appear on the chart. . .

The market only has 4 states:
- up
- dn
- in
- ot

A narrow channel, a collection of closes, is an "in".

When two "ins" are nearby it forms what we call a "z" level, two horizontals separated by a space; sometimes there is a third level, but let's not worry about that rn.

Price is "in" patterns, and patterns are traded either 'up and out' or 'down and out'.

Price can exit patterns in either direction, whether or not you do anything about it depends on where you are trying to take your trades on the large charts.

I describe things the way that I see it, but everyone must describe it to themselves; because the only thing that matters is that you see it.

[BambinoFlex]

Got it! I’ll be on the lookout for those “Z” formations

I can confidently say that I understand you. Plus I love the high-low projection lines. I refer to them as “Igazi lines”

[BambinoFlex]

This has been my best example in applying those principles. Not fast enough to exit when price is “up” on the smaller tf but that’s my next thing to work on. Risk was normalized when I added, 1 position was closed in profit but I was able to add again.

[kiwiarian]

Sure.

I'll mansplain TRO

This is a daily chart:

- when price is above the previous midpoint, it is going 'up'
- when price is below the previous midpoint, it is going 'dn'
- when new highs are being made, there is an upward expansion.
- when new lows are being made, there is a downward expansion
- if you get an OB then price is moving in the direction of the last expansion.

Now you know everything about 'what is up' as it relates to a large chart;

on the smaller charts:

- if price is above ranges then it is going up
- if price is below ranges then it is going down.

When price is 'in' something, you can trade 'up' and 'out' or you can trade 'dn' and 'out'.

you can bet that price will continue to go up in the long or short run.

you can bet that price will reverse and go down in the long or short run.

The 'x' that we draw on the small charts relates to the previous daily midpoint. . .

on the intraday charts, the previous midpoints move toward the extremes of the previous day:

what_is_up.png

why_X.png

Not sure what you mean on that, is it the previous midpoints move toward the extremes of the previous-previous (2 days prior) day:

[IgazI]

Not sure what you mean on that, is it the previous midpoints move toward the extremes of the previous-previous (2 days prior) day:

The previous midpoint doesn't move. . .
I mean that the projection will be at the previous price extremes by the end of the current day.

by_three_they_come.png (103.34 KiB) Viewed 963 times

[IgazI]

This has been my best example in applying those principles. Not fast enough to exit when price is “up” on the smaller tf but that’s my next thing to work on. Risk was normalized when I added, 1 position was closed in profit but I was able to add again.

Let's say that I am short from the red horizontal. . .

I will trail limits to exit and then I will trail limits to enter.

This can end badly, but it usually doesn't
- the initial entry is sized at 1/4 to 1/3, so it is not really that big of a deal if you get caught with your pants down.

The small chart:

tail.png (16.53 KiB) Viewed 950 times

[BambinoFlex]

By “trail limits to exit” you’re referring to scaling out of a losing position as price goes against you? In Kreslik talk, you’re increasing your space.

[IgazI]

By “trail limits to exit” you’re referring to scaling out of a losing position as price goes against you? In Kreslik talk, you’re increasing your space.

It is best to think of it as a trailing stop that exits a losing position or one that enters a winning position.

If price is above your entry then you have the luxury of exiting in two or more orders, but if you're losing then you just want to get out:

my order might be up for 8 seconds before I replace it with an even worse price; if price is moving towards my order then I will give it a little more time.

[BambinoFlex]

Hmmm, I think I got it. In essence, it’s to exit/enter on a pull back with an order ready in place vs a market execution?