Mira wrote: LeMercenaire wrote: Mira wrote:
So in that case this was the Momentum (the horizontal line is the 50%)
Mmmmm...not in the way I am meaning. Let me try and find a perfect example I can mark up (I will have to use mt4 marking as if I try and post any charts I actually draw on, I am told the files are too big!?!?!).
Anyway, bear with me.
Mmm sometimes it happens to me too.
I’ll be waiting, thank you!
Ok, here we go.
DAX on H4 but as I said, it could be anything, on any time.
So, we have chunky candle 'B' breaking the high set by candle 'A', our ''Pointy Place''.
We draw a line across from that high off candle 'A' and through candle 'B'. That's our Z-Line (as I see Z-Lines).
We wait for price to come back to that level, which it does at candle 'C'. It doesn't quite touch it but I'll come back to that.
Ok, so as I said, price didn't quite touch that Z-Line. Yes, we could have gone in anyway as we see price stalling and on the lower tf - if we were to use that technique - will have given us pa to work with. However, look what happens when we add a fib over that up move.
Now what we can do is fill the area between the Z-Line and the 50-level to give ourselves a Kill-Zone.
I haven't gone down to lower tf as I wanted to keep this as simple as possible and anyway, as I have said, this is fractal and we could just as easily have been running this off the 1-min already.
So, that's how I do things. I like to keep it simple. I have talked before about how others run Z-Lines differently but for me, this makes sense to me and more importantly, it works.
Hope that helps even a little.