Mira wrote:LeMercenaire wrote:Mira wrote:
Thanks for replying!
I tried to use fibs as you explained several times but I ended up being confused as always lol.
So was that a short??
I definitively don’t get the MOMO.. and so the direction and the zlines.
See if this can help make it clearer.
Here, the fib would be dropped down from point A and B. The bounce on the way down would have failed to hold over the 23.6 level on the way down. (I'll come back to this in the next chart detail).
So, now we have a break of the 50-level and Candle C closes over.
Now, maybe this is where some confusion would come in, as normally, we would say that well, close over, so we will be going long. However, I feel that on the Daily tf, this (while not being completely invalid), should be treated with caution. Hence my saying that we didn't get a hold over on the previous move around the 23.6 on the way down.
We all know the concept of move + retrace + move again, so for me, on the Daily, I am looking for the close of the following candle. Does that have its retrace but still hold above the 50? In this case, no (as was the same on the way down at the 23.6, remember).
Ahhhhhhhhhhh, now you are seeing that this is actually not so. The next candle did in fact close above. Yep, it did, however, that was a gap-filler candle. The small candle opened gapped down and so the likelihood was that it would move to fill that gap, which it did. It didn't however, show any kind of inclination to go anywhere beyond that. So now we have a lower high to contend with.
So ok, you were looking to try long off it, as it gapped, you got something at least. You'd then have figured out that something was a bit off with it and hopefully closed it out for some green, knowing that you can always go in again if it does continue on.
Right, so now, for me, the 3rd candle is the one I want to treat as a nominal 2nd one...and that one very definitely doesn't close above, quite emphatic in its desire to run South of the Border.
That would be Candle 3 (D) taken care of...
So down it goes. Tries to come back on us. Fails - and this is where it gets really interesting.
Candle E opens, makes its move back toward the 50-level and just shows no inclination to stay above it (and for this, we would be looking at pa on the lower time frames - but I don't want to clutter this and confuse with multiple tf charts).
As price comes back across the 50-level, in we go and we are in very good stead as price has just about reached the 23.6 level, which funnily enough, just happens to be where a secondary level of Demand has formed. Funny that, eh?
Right. One more thing. That good ol' MOMO we love so much.
If you take a look at the place we got in at, the pull back of Candle E. See where the High is? The bottom of the doji candle between C and D. Now, for me, candle D is standing over that DOJI and waving its great big MOMO in its face. So what we have is a perfect Z-Line to back up our candle E pull back to the 50.
Hope that all makes some kind of sense but please, never hesitate to ask for clarification.
I don't know why it doesn't want to kick in..
Your "D" candle i.e., you said it's momo while i always thought that momo is (are) that two white bars going up and that D is a wick in direction of loss.. aka good to go long
I see it as the MOMO comes as the candle is open, so the heavy fast drop. Then the retrace is moving back to the Z-Line, so yes, wick is now in direction of loss, as price is catching out all those late comers jumping on short.
We can also play price as it moves back towards the Z-Line of course, I just didn't cover that here (again, in case it confused more)
I have covered the move back away from the Z-Line, which is how I usually do it.
The only time I would play it back up, would be if it was a mega range single move candle,.in which case I would Spike-Hunt the long back away from the extreme of the spike.