Bettleboxs Breakdown of Zlines and MoMos

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vamp
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Postby vamp » Thu Oct 02, 2014 5:09 am

Appreciate the update, and the sharing.

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Postby LegendofZline » Fri Oct 03, 2014 4:16 am

Can you explain the dots? Is it a indicator? how is the dots determined?


thanks again...

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bettlebox
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Postby bettlebox » Fri Oct 03, 2014 7:35 am

Hi LoZ

The Dot are 50% level of the entire range of the candle (High to the Low).

Im using the TRO_MID_DOT free indicator.

How it works is like this, in every price turn there is 1 candle that will be the highest or lowest. Anohter way of saying this is the candle that forms support or resistance. This candle that is the highest or the lowest in a price turn we will use its MID_DOT as a line in the sand.

Next we wait for price to close back beyond that line. It can happen in the next candle or it could be a pinbar that formed the high or low.

Then next candle we are waiting for a retest or price to return to our MID_DOT level (it could take several candles). Soon as it reaches this level we can look for an entry.

summary:
1) Determine which candles mid_dot we will use in the price turn(ie the highest or lowest)
2) Wait for price to close back beyond this level.
3) Wait for retest of this level.
4) if price makes new high or low then goto back to step 1

NB: if price doesnt retest the your mid_dot level then use wave patterns on the lower timeframes to get in ie pure z-line trading in the direction of the your higher time frame. I used daily chart ( my price turn and market structure only) and 1hr charts(for entry) only. I dont have luxury of finding entries lower than 1hr any more.

I have included 4 picture showing how it works one is a pinbar turn where price form the high and closed back beyond the mid_dot in one go. Also the other version where it took 2 bars can take more as long as the highest/lowest candle holds. You must wait for the candles to "CLOSE" back beyond the mid_dot on your highest timeframe.



LegendofZline wrote:Can you explain the dots? Is it a indicator? how is the dots determined?


thanks again...
Attachments
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LegendofZline
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Postby LegendofZline » Fri Oct 03, 2014 4:04 pm

Awesome...

Would you consider supply and demand areas at the
momentum bars open?

On another note this looks like itll be easy not to get whipsawed
as you need the turning point as confirmation of the direction you want to go...

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Postby bettlebox » Fri Oct 03, 2014 4:53 pm

Hi LoZ

I dont quite follow what you mean "Would you consider supply and demand areas at the momentum bars open?"

could you rephrase it?

BB


LegendofZline wrote:Awesome...

Would you consider supply and demand areas at the
momentum bars open?

On another note this looks like itll be easy not to get whipsawed
as you need the turning point as confirmation of the direction you want to go...
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Postby LegendofZline » Fri Oct 03, 2014 5:27 pm

Thanks again in advance

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Postby LegendofZline » Fri Oct 03, 2014 5:37 pm

bettlebox wrote:Hi everyone

This update how im trading at moment. I have made the jump to higher time frame trading this quick over view with an example of a live trade im in at the moment on GBP/USD.

1) Identify major support and resistance on daily time frame.
2) Once price in an area of S/R on daily look for price turn on the daily chart.
3) Next day after a price turn drop into the hourly chart and look for the pullback.
4) Then momentum to away in your direction. Take your entry.
5) have some form trade management and trade to your next daily S/R line.

Ok so as quick overview here is a live trade im still in at moment. It shows the 4 steps.

This is everything its really is quite simple method using exactly same principles its all momentum and retracement. The key is number 1 identify S/R all these areas are is where price moved away from an in hurry. ie big movements of 100 pips or more.

I will try expand on the ideas time allowing.

BB

How do you determine your blue line (S/R line)?

You wrote above the most important step is step one...
You find candles or areas that move 100 of pips.

Do you put the line at the open of the massive move?

So I figured usually a momentum bar does the same thing. It moves away significantly away from price. Would the open of the momentum bar also be considered a blue line area...?

Is there other things to consider when drawing your s/r lines?

Sorry if that was to many questions at once.

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Postby LegendofZline » Fri Oct 03, 2014 5:48 pm

Needless to say.

Applying your concept is working wonderfully...

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Postby bettlebox » Fri Oct 03, 2014 6:31 pm

Yea i use the body , they are dragon lines basically. You can define a channel from the blue line to wick high or lower on a daily turn. Remember these are areas are never lines.

What i do is change the chart from a candle to line chart, makes it easier to see the movements and draw in my lines. Then change back to the candle chart and pull the lines up to what would be a dragon line.

You want to look for all the basics of support and resistance plays. ie resistance becoming support and visa versa, price bouncing away from defined support and resistance. I just look for major moves im not interested in the choppy in between levels.

If its an all time high or all time low i will put a blue line on it.

thats how i draw the blue lines. Its bit of learning experience with this takes a while to get it.

Momentum:- i only look for momentum on 1hr chart i never look for momentum on the daily. All im doing on daily is defining market structure and looking for a turn to start once it returns to a martet structure level.

A momentum candle or momo is just an engulfing pattern, small body candle followed by large body candle, simple as that.

If i get 1hr momentum (ie engulfing candle) off my daily turn line im in.

BB


LegendofZline wrote:
bettlebox wrote:Hi everyone

This update how im trading at moment. I have made the jump to higher time frame trading this quick over view with an example of a live trade im in at the moment on GBP/USD.

1) Identify major support and resistance on daily time frame.
2) Once price in an area of S/R on daily look for price turn on the daily chart.
3) Next day after a price turn drop into the hourly chart and look for the pullback.
4) Then momentum to away in your direction. Take your entry.
5) have some form trade management and trade to your next daily S/R line.

Ok so as quick overview here is a live trade im still in at moment. It shows the 4 steps.

This is everything its really is quite simple method using exactly same principles its all momentum and retracement. The key is number 1 identify S/R all these areas are is where price moved away from an in hurry. ie big movements of 100 pips or more.

I will try expand on the ideas time allowing.

BB

How do you determine your blue line (S/R line)?

You wrote above the most important step is step one...
You find candles or areas that move 100 of pips.

Do you put the line at the open of the massive move?

So I figured usually a momentum bar does the same thing. It moves away significantly away from price. Would the open of the momentum bar also be considered a blue line area...?

Is there other things to consider when drawing your s/r lines?

Sorry if that was to many questions at once.
There are two forces acting upon us: Suffering pushes us forward from behind and pleasures entice us and pull us forward.

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bettlebox
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Postby bettlebox » Fri Oct 03, 2014 6:41 pm

What i have shown is the concepts and a live example. But you should realize you need a period of applying these concepts in live market and learning as much as you can from that experience.

Main thing is its simple and it works.
BB
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