Jhx wrote: Mira wrote:
NLA is a sort of trading bible
I’m used to read a few pages around the forum sometimes and now i casually found a post about zlines and stop placement.
Zero Lines are only for discretionary traders and that is why there are only about 5 or so traders on this forum that make money with them.
They were meant to be analyzed on 4 hour or greater time frames!
If you want to use them on a 5m chart then go ahead and act a fool
Zero Lines do not signal trades!
Their purpose is to determine direction and areas where there is a low chance of draw down.
IF YOU DO NOT UNDERSTAND THIS PICTURE THEN ZERO LINES ARE NOT FOR YOU:
And I still don't understand that picture.
On another note on the NLA thread, there are some really good comments."it really is that simple----"Naked charts and horizontal lines really allow you to see."
its like the market moves to zero out certain traders and then it goes the other direction to zero out the others and then back and then it goes again and it just repeats over and over again.
Almost like a big expensive game of ping pong."
I had the same problem about that pic lol
However it’s simpler than it looks:
the first rectangle contains the bullish momo, every line <= 50% is a potential zline.
The second rectangle is a consecutive bar if you imagine it as a Custom Candle, so a pullback and wick is a Zline trade.
The third rectangle is a trade away from a support (not consecutive move).
The stop loss area is based on the pivot made by the first rectangle and that answers my question from last day.
I hope it makes sense.