cfabian wrote: deeforex wrote:
OMG! no wonder why I was getting so confused with the Z-lines.
I thought that the z-line was at a given price level but
"ANY LINE IN THE ZL AREA IS A ZL!"
there's actually a ZONE, with your choice of price! If I recall correctly, MO had mentioned a zone in his earliest posts!
The second thing that was bogging me down was what es/pip said "where are the longer lines originating from?"
MO's chart says: "<---There is nothing back there!"
ok, sometimes there's nothing back there but if there was something back there, do you look for support/resistance, reversal points (open or close price?), all the above, something else?
the picture is becoming clearer!!! Now I just need to practice trading it!
MO, Thank you for clarifying WaterHorse setups. If someone doesn't see it, let me know and I will add more notes to a chart.
I'm so happy that the room is no longer so dark!
Hey Dee and all, I cannot clearly see the whitehorse setups. Please some help on those lines.
Again, thanks to all for posting your charts and explanations.
Procharged... when I read your posts I feel it is me. I'm with you man... lets keep up with this.
It is simply pattern trading using up-down, down-up, up-down-down, & down-up-up.
The rules you choose to use is up to you.
In this picture the pattern used is:
down-up-up is an up trend
up-down-down is a down trend
trends change trade directions
down-up-up: IF up-down-up-down appears in up trend THEN trend is short until down-up-& a higher up than the highest up bar in the trend.
After up-down-down down-up-up alone reverses the trend.
up-down-down: IF down-up-down-up appears in the down trend THEN trend is long until up-down-& a lower down than the lowest down bar in the trend.
After down-up-up up-down-down alone reverses the trend.