es/pip wrote:brettnchrism wrote:Ok I am waiting for my ah ha moment here. My first one was seeing how traders get zero'd out and I completely see that all over my charts with the help of blubb's z line indicator.
Now ES said (if this trade/area holds where is the next group of traders sitting with held profits) Ok I see on the charts I posted that GJ just zero'd out profit holders in the 35 area and now made a new momo up on the hourly along with making a double bottom. Price is headed for the 25 zl which is a H4 H1 target. This is where I loose it. How can I tell if after the 25 zl gets hit that price will not continue up to the short holders or going to stop at the 25 area and continue down to the long holders. I did look at the H4 and there is a momo down bar so what I would say since we have a hourly momo up into a down h4 momo a long would not be advised. Anyway this is the last part of my puzzle how to determine directon after a zl has beeen hit. I posted GJ chart H4 and H1 for an example.
"This is where I loose it. How can I tell if after the 25 zl gets hit that price will not continue up to the short holders or going to stop at the 25 area and continue down to the long holders. "
i don't know--- you cant know--- no one knows (except maybe MO)-----. if someone figures that out please let me know. All i know is the market lives to zero out other traders, it moves to and from each area and sometimes the area holds and sometimes it does not.
you have to think about what all the other traders did and are thinking about doing. and then trade off of their emotions. it is all about held profit and momentum.
so (keep in mind this is friday afternoon)
this what i would be looking at and thinking-- i don't trade this pair but this is what i would think when i look at this chart
in your 4 hr chart example if i saw the double bottom and notice the momo slowing into it.
so if i was thinking of trading long i would dial down and look for a reason to trade long
if i was only referencing the h4 as far as held profit i would be targeting the magenta line. when price gets up there i would take my profit and then look inside and see whats happening to see if i am going to try and trade short back down to the yellow line.
if the PA and momo do not show that the magneta line is going to hold the price and we have momo up thru that area. Then i would be looking to get back in long( based on momo) and trade up to the next area of held profit--- which would be the red line.
I am not sure i can explain what i do---- hell i am not sure i even know what i am doing when i am doing it---------- i just look at where we are where we came from and where we are going next---based on held profit------- and then trade to and from those areas based on momo.
momo shows the way
held profit is the destination
Excellent Post es/pip,
Very thorough.
