How to be a MOnster

[Mira]

Nope, not my week.
H4 Z-line (Mr. D, that is what I see as a zline, but at this point I think that I’m wrong)
Then there is a higher high, reversal patter on a lower timeframe aaaand FAIL.

E214DF69-C84A-40AC-B587-B920057D323D.png (72.76 KiB) Viewed 2807 times

286FFC04-2409-4B88-B7BE-0395BFE4B3DF.png (77.31 KiB) Viewed 2807 times

[Mr. D]

Nope, not my week.
H4 Z-line (Mr. D, that is what I see as a zline, but at this point I think that I’m wrong)
Then there is a higher high, reversal patter on a lower timeframe aaaand FAIL.

E214DF69-C84A-40AC-B587-B920057D323D.png

286FFC04-2409-4B88-B7BE-0395BFE4B3DF.png

Tell me about it! Got stopped out five times today on /ES. Bad day.

Thought z-line was,

1) Momo approx. twice as bigger than prev candle,
2) Two lines form a zone from OpenClose/2 to Open.

Is it a different animal?

[LeMercenaire]

Good day, good people!

About Momos and Z-lines, sometimes they work, sometimes they do not. Help me understand them better. On the printscreen, I've drawn some. Am I missing something about them or their rules?

If not, how can one protect against "failed" Z-lines? I can see that one can move stop quicker. What else?

Gotta love this learning! So much great stuff.

Thanks in advance!

That's an H1 chart. The lower down you go, the less robust they (Z-Lines) will be.

Anyway, not to say don't use them, I certainly do, just be aware.

First up, Z-Lines are not some written-in-stone thing. The way I look at them is that they are lines where something will happen...we just don't know what for sure.

That is why we wait for a reaction from price as it gets near one. Close over, retest, enter...close under, retest, enter.

You can either stay on the time frame you are watching, or drop down to m15, m5, whatever.

On your chart, the only Z-Line I see worth any consideration is the large Bear on the right. You can see that there is already a return to the line under way.

You can (I do) extend the Z-line into a zone by running a fib down over that and look to enter as and when price enters into the area between the Z-Line and the 50-Fib.

I think there is someone else here who has worked this in a similar way and I apologise that I can't remember who that is / was.

As you know, I will also look at micro S+D to see if I can get any clues and / or warnings from those as well.

[Mr. D]

Lem, friend, hello!

Great to hear from you.

Appreciate the explanation about Z-lines. Which TM are they best for?

I can see "Close over, retest, enter" Would be great to see a graph with "close under, retest, enter." And, if possible, a graph with "You can (I do) extend the Z-line into a zone by running a fib down over that and look to enter as and when price enters into the area between the Z-Line and the 50-Fib." Visual aids are the best!

Look forward to learning about S+D.

Good stuff!

Good day, good people!

About Momos and Z-lines, sometimes they work, sometimes they do not. Help me understand them better. On the printscreen, I've drawn some. Am I missing something about them or their rules?

If not, how can one protect against "failed" Z-lines? I can see that one can move stop quicker. What else?

Gotta love this learning! So much great stuff.

Thanks in advance!

That's an H1 chart. The lower down you go, the less robust they (Z-Lines) will be.

Anyway, not to say don't use them, I certainly do, just be aware.

First up, Z-Lines are not some written-in-stone thing. The way I look at them is that they are lines where something will happen...we just don't know what for sure.

That is why we wait for a reaction from price as it gets near one. Close over, retest, enter...close under, retest, enter.

You can either stay on the time frame you are watching, or drop down to m15, m5, whatever.

On your chart, the only Z-Line I see worth any consideration is the large Bear on the right. You can see that there is already a return to the line under way.

You can (I do) extend the Z-line into a zone by running a fib down over that and look to enter as and when price enters into the area between the Z-Line and the 50-Fib.

I think there is someone else here who has worked this in a similar way and I apologise that I can't remember who that is / was.

As you know, I will also look at micro S+D to see if I can get any clues and / or warnings from those as well.

[LeMercenaire]

Lem, friend, hello!

Great to hear from you.

Appreciate the explanation about Z-lines. Which TM are they best for?

I can see "Close over, retest, enter" Would be great to see a graph with "close under, retest, enter." And, if possible, a graph with "You can (I do) extend the Z-line into a zone by running a fib down over that and look to enter as and when price enters into the area between the Z-Line and the 50-Fib." Visual aids are the best!

Look forward to learning about S+D.

Good stuff!

Good day, good people!

About Momos and Z-lines, sometimes they work, sometimes they do not. Help me understand them better. On the printscreen, I've drawn some. Am I missing something about them or their rules?

If not, how can one protect against "failed" Z-lines? I can see that one can move stop quicker. What else?

Gotta love this learning! So much great stuff.

Thanks in advance!

That's an H1 chart. The lower down you go, the less robust they (Z-Lines) will be.

Anyway, not to say don't use them, I certainly do, just be aware.

First up, Z-Lines are not some written-in-stone thing. The way I look at them is that they are lines where something will happen...we just don't know what for sure.

That is why we wait for a reaction from price as it gets near one. Close over, retest, enter...close under, retest, enter.

You can either stay on the time frame you are watching, or drop down to m15, m5, whatever.

On your chart, the only Z-Line I see worth any consideration is the large Bear on the right. You can see that there is already a return to the line under way.

You can (I do) extend the Z-line into a zone by running a fib down over that and look to enter as and when price enters into the area between the Z-Line and the 50-Fib.

I think there is someone else here who has worked this in a similar way and I apologise that I can't remember who that is / was.

As you know, I will also look at micro S+D to see if I can get any clues and / or warnings from those as well.

Yeah, no probs.

''Close under...etc'' basically is a failure to close over.

However, I will find a couple of charts that maybe illustrate both the above questions well.

Getting ready to log off and get ready for coaching duties, so will either be tonight or tomorrow.

[forexjpn]

Mr.D, Zlines are used differently by different traders here on the forum. Zlines are formed when price moves and creates held profit and if price returns to the origin of that move, we can say that the held profit has been zeroed out.
I use the Zline as a target, so I trade the retrace back to the origin to take the held profit, as stated above.
Others use the Zline as an entry level, expecting price to bounce back in the original direction after the held profit is taken away from the weak hands..... So I guess for them a failed Zline would be when price does not bounce back, but continues through the Zline....
Like I said , I prefer to trade into the Zline rather than off of it, (but come to think of it I probably am actually trading off HTF Zlines anyway). Hope that makes sense.

[Mr. D]

Mr.D, Zlines are used differently by different traders here on the forum. Zlines are formed when price moves and creates held profit and if price returns to the origin of that move, we can say that the held profit has been zeroed out.
I use the Zline as a target, so I trade the retrace back to the origin to take the held profit, as stated above.
Others use the Zline as an entry level, expecting price to bounce back in the original direction after the held profit is taken away from the weak hands..... So I guess for them a failed Zline would be when price does not bounce back, but continues through the Zline....
Like I said , I prefer to trade into the Zline rather than off of it, (but come to think of it I probably am actually trading off HTF Zlines anyway). Hope that makes sense.

That is very smart to trade toward Z-lines! Tried it a couple of times already when the price was definitely going towards. However, sometimes it takes a while for the price to return. What is your philosophy on SL and TP?

[forexjpn]

Here is a simple chart.... sorry best I could do with mobile MT4. Long arrow shows original move..... small arrow shows Momo and red line is Zline, but as others have said where the Zline goes is a little subjective.

[Mr. D]

Here is a simple chart.... sorry best I could do with mobile MT4. Long arrow shows original move..... small arrow shows Momo and red line is Zline, but as others have said where the Zline goes is a little subjective.

Hi forexjpn,

Thank you! Visual is helpful. Do you mind sharing your criteria for drawing Z-line(s)?

Best,

[LeMercenaire]

Mr.D, Zlines are used differently by different traders here on the forum. Zlines are formed when price moves and creates held profit and if price returns to the origin of that move, we can say that the held profit has been zeroed out.
I use the Zline as a target, so I trade the retrace back to the origin to take the held profit, as stated above.
Others use the Zline as an entry level, expecting price to bounce back in the original direction after the held profit is taken away from the weak hands..... So I guess for them a failed Zline would be when price does not bounce back, but continues through the Zline....
Like I said , I prefer to trade into the Zline rather than off of it, (but come to think of it I probably am actually trading off HTF Zlines anyway). Hope that makes sense.

Nice explanation. I had completely forgotten about the retrace move. My doing that trade was the way I was originally introduced to Z-Lines.