Body in the direction of profit
Wick in the direction of loss
See the truth
Fade the illusion
Once there is an alert that price is in the zone you can either go at it DTB style entering when price retraces 5-10 pips or you can enter on a retrace to the nearest horizontal line.
I have been favoring horizontal lines over any other entry method.
I came across this chart today and I think it's a "classical" zline setup.
zline is plotted using blurbb's zline indicator. numbers are mo numbers.
As you can see from the chart the first few candles after the bull momentum bar (with 90 on the top) wicked the zline. After a few candles the bear took over the price went toward the zline and wick again. At this moment bull candle appeared and it went up with some momentum. Despite the momentum it wasn't strong enough and after a bit of tussle (top blue rectangle) price came back down again starting with a momentum bear candle (with 4 on top).
The question I have is:
1. How should I play this setup? Should I place long limit order at the zline? 2. How do I know if price will go higher at zline? Does the "wick" show the way as MO mentioned before?
Thanks in advance