adaseb wrote:Hello traders.
I am currently at around page 250 in this thread and I am a tiny bit stumped when it comes to trading the Zero Line.
I re-read this thread even twice from around page 130 where MO started posting and I am still confused about the "Analogy of the Zero Line".
I attached two photos.
Looking at the first photo. Why did a spike up past the ZL form?
Was it because of the shorts that entered at * who thought the price was going to go down but where wrong when it stalled so they tried getting out at break even and created a short squeeze which temporary drove the price up?
Or was it the long who thought that their long entry at # was not going to work out and tried to get out at break even?
In the second photo a spike down happens.
Now did this spike down happen because the longs that entered at # were getting nervous with their position and they tried getting out a break even and created a sell off (long squeeze).
Or was it the shorts who entered at * were nervous when their short position went against them and they waited to get out at break even?
i was going to say----- dont worry about the "why" bec your charts are marked correctly---- but then i realized those are my charts
i posted a long response to this somewhere in the last 100 or so pages-----------as to why the bars form that way----the reasoning behind it.
not saying that my long list was correct or incorrect, just that it was my thinking behind it.
go back and find that post and see if it helps----
i am not sure there is a definite answer to your q's