prochargedmopar wrote:TheRumpledOne wrote:prochargedmopar wrote:
Please explain ZL in your own words with a chart or 2.
First, you must watch ICTs Free videos and listen closely.
Every down bar is NOT a buy ZL and every up bar is NOT a sell ZL.
ZL's with gaps are much more powerful when combined with the fact price just made a run on liquidity. (Broke out)
What's that one dudes quote on new highs/lows?
All it is, is momentum.
How fast is price moving up/down the totem pole?
Is it overlapping
Is is making big jumps?
Is it making new highs/lows?
Closes below up bars and closes above down bars are VERY powerful all by themselves (ZLs)
You know what MO says, closes above/below something.
They are way more powerful when combine with a little common sense. (structure breaks/gaps/liquidity runs/and a few other things)
But just remember, "Common sense is a fruit that grows in some peoples gardens but not others". Uncle Tony's Garage
Let's look at this buy entry one more time with a couple descriptions on what happen to price going back up the totem pole......
First it was trading up and down.
Then price broke down.
Then price started to slow (inverted hammers)
Then price broke up and left a GAP.
Price was moving so fast it could not cover ANY of the gap it left behind and closed up again.
Next, price retraced to the 50% of the GAP. Very important.
Price then made another inverted hammer. LOL
I have no idea why these show up so often at price turns, I'd never trade them by themselves which is what most people do with "patterns" and fail.
Then price ground up crisscrossing all the way to break back into previous up/down area and even Wicked outside the high of said area....
Very easy trade, check that, SIMPLE.