brettnchris wrote:Ok I have been trying to understand this for awhile now.
This is what I came up with. I am only trading extremes and i draw lines on the momo's on the way down as soon as price closes above my momo line/z line (red arrow) then I start looking for a long as indicated in this picture ( blue arrow which happens to hit a z line)
This seems pretty simple to what you guys show am I off or missing something?
this is and hour chart trying to keep it simple....
Ok, I'll try to explain this again...
Forget all the fancy names and other crap.
Look at the daily+ charts and ask yourself if price last closed higher or lower than something; don't get too technical, just go with your gut.
If price last closed higher than something then you are trading off of daily+ low extremes.
At some point you will be at a daily+ low extreme on a small(er) tf chart. Wait for said chart to close a CC higher than something and just buy.
If a correction is obvious (if you have such powers of prediction) then exit and buy back lower but do not abuse this; twice is more than enough.
As price moves in your favor, switch to a higher TF chart and set an average below a support level for that period.
Attempt to move your trades to the weekly chart, but if the weekly chart did not close higher than something then your highest chart should be a daily chart.
-Don't simply buy low and sell high
-Buy low, keep buying, and sell highest.