aliassmith wrote:Made up some picture perfect looks at zeroline concept.
I see it as follows. It is part of my trading plan. If it closes below the lower line (or upper line in case of a short), the zone is invalidated.
The price is the knife, the s/l is under the table. The upper (lower) line is the limit entry to catch the knife. In case of doubt use a stop order to catch the knife when it bounces back. Only catch knifes if you have checked that there a) is a solid table underneath, b) the knife isn't a sledgehammer , c) the R/R fits your requirements. It is not a problem if a knife sticks its ugly head through the table, you have your s/l in case it turned out to be a sledgehammer. Closed candles are the truth.