cfabian wrote:es/pip wrote:prochargedmopar wrote:Question:
If I combine the last 3 closed H1 candles does that make the long blue lines a Mighty zone?
If I combine the last 4 closed M5 candles does that make the shorter blue lines a Mighty zone?
It looks to me that price ran away from both and didn't give one much of a chance (wick) to get in.
See second pic for M5 run away.
not sure why u are combining multiple candles to get the zone---unless u are looking for a higher time frame inside the smaller chart---but i dont think that is what u are doing
reread MO's post when he talks about the creating the zone
this is how i see the 5 min chart in that seq.
just bec u have a zone doesnt mean u just flat out take it
poss. long zone= blue
poss short zone = magneta
just how i see it
What is the criteria to "do not take all the zones"? I can see the 2nd blue would be a loss, but how to know you shouldn't take that one?
I can see on your charts that you do not enter on the ZL, you wait a bit and get in leaving some pips on the table... is this how you "make sure" the candle goes to your direction, by waiting it starts to pull your way?
If that is the case, you enter with limit or stop orders?
For starters momentum increased short and there was a wick in the direction of loss (buy side).
On top of that there is a 3rd candle going into the zone and, if you read my prev. posts on ZL, you know that multiple candles heading toward a ZL is not a ZL trade but a possible trade away from support or resistance.
Trading long from support would be dumb after that 3rd short candle since momentum increased short on that candle both in the number of bodies it consumed and the magnitude of the candle body in relation to the prev. candle body.