Let's hear the pros answer this, but in my opinion if you consider taking these trades, will be in shorter time frames aiming the line at 50% of previous momo bars, only if you get a short momentum in your smaller TF.
However, overall, why you want to consider trading short in H4 when momentum is upwards as well as held profit???? I would target 152.00 on the GBPJPY. Trading short in these setups are riskier.
That's my take on this, however I'm in the same process as you.
and another question.... we should be aiming for bigger gaps between opposite MightyZOnes right?
So in picture below Left short trade is better than Right one?
i will let dragon answer the other post since it is directed to him
this is just what i do---- it may not work for you--hell it may not even be what u are supposed to do.
a true zl trade happens on consecutive bars----- so i am more willing to just get in on those.
the ones that happen that are not on consecutive bars are treated like a s/r trade and you trade away from the area
i am little more hesitant to place bids or offers---- but sometimes i do-----most times i don't --- when i am coming into a zl that happened over multiple bars i want to see some new momentum inside that time frame and trade it off that,
So what the above means is
i am coming into a larger time frame s/r based on a zl or mz. I dial down to see what is going on inside. I want to see momo increasing to show me the way. I am then watching the PA on the inside time frame to tell me whether it is going to work or not----- i have no problem closing the trade if i see something i do not like and just getting back in when things turn back to the way i want.
i look at that scenario the same as cfabian was saying--- on the ej
you have an h4 big down momo
then you have what looks like an increase in momo on the h4(based on the previous bar) but it is right back into the larger down momo so i would still be thinking short--------- however, sometimes i will play it long off that bar depending on whatever makes me make my decisions-------majority of the times i am treating it like i said above looking short.
i didnt even make a trade in the ej in the US session today--- i was short near the asian session start. made my pips on that and the euro and pound long before the US open---- you can see them on the h1 charts after coming into h4 support
i know a lot of people are looking for a do this when this happens and do that when that happens type of answers---
it doesn't work that way
it is discretionary
Bend over and assume the position for another 4 years of hope and change.