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Would anyone care to share some of the patterns you see as it pertains to the 3 Level ZZ indicators?
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jpboxer wrote:Would anyone care to share some of the patterns you see as it pertains to the 3 Level ZZ indicators?
This is an interesting indicator. Its like picking up a small bar of gold with a scorpion underneath. At times it is like a crystal ball and other times it is like cyanide. The pattern is really simple. When it first appears it signals that a nice breakout is occuring. At this point a breakout trade is possible. The length and duration are unknown. Most of the time the Semafor does not stay with the candle that it first appears on. At some point it will anchor and signal a reversal. Determining when this will happen is unknown. It may stop at the first candle or it may hop fifty candles before it anchors.
My best advice to you would be to try a catch a breakout when it first appears. Indeed I am working on a strategy for that as we speak. I finally got tired of being on the wrong end of reversal trades. I would like to see this indicator work for me and not against me for a change. However, if you decide to use it to try and catch a reversal, then I would strongly suggest that you wait for it to hop some candles first and then use it with other signals before taking a reversal trade. Wait for TROs Dynamic Fibs SR Trail to tell you it is OK to Buy or OK to Short in addition to the Semafor. Also, only take the reversal with the trend of a longer candle(s) than your current chart. DONT TRADE REVERSALS USING ONLY
THE SEMAFORS. Use the confirmations I describe above.
It is easy at first glance to think that this is the holy grail of indicators. It is not. It is just a another tool in your toolbox. Nothing more.
All I need is Supply and Demand
I would like to extend a big thank you to TRO (for his strategies)....and to Rowdy and Jefe for a quick and helpful replies to my question. I'm a Newbie and with TRO's system, I traded my way from $125 to $515 bucks in 6 days....using the Semafor system. I'm sure I was trading too aggressively...because I gave a lot back! I'm back to over $200 bucks after a painful recovery.....patience is KEY!
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