My trading partner and I am lurking for about a month now, reading every post and looking at charts in this great forum. We have been trading for over 8 years and we are really interested in what you are doing here...it would be nice to be "FREE" as someone mentioned in a post.
But we must be honest with you great traders...we are having a very hard time understanding what you are looking for to identify a potential trade and what you use to determine your entries.
We dont understand some of the terms that many use here that seem to be important to their success:
Z Lines--can someone be so kind and show us on a chart where and what a Z line is?
MOMO candle and...what is a momo candle? I read somewhere that its not just a candle that is 2x's as large as a prior candle...so what things make up a MOMO candle?
HELD PROFITS--what is meant by this exactly? How do i know there are held profits and what is the psychological importance to trading about held profits?
Lastly we looked at Dragons chart and have some questions about why lines are drawn where they are and also why? We have attached the marked up chart.
Hopefully this isnt too much of a pain and someone will be gracious and kind enough to help us so that we can in turn help others as they come onto this great forum.
Thanks for all that everyone does here!
One of the above posts by MightyOne clarifies all of your answers.
A zeroline is created by a body in direction of profit. You can see that on your charts when there is a BO of previous high or low!
The next important thing to make your decision is a wick in direction of loss. Read price need to wick the BO. If that happens you have a valid trade!
The higher the timeframe the bigger the importance, the bigger the runs.
You only need two candles to trade nothing more!
Always look to the higher frame like H4 because the momo bars will lead you in the right direction!
The number ones are the bodies in direction of profit. The 2's are wicks in direction of loss. Keep the lines on your charts because those lines will be possible targets in the future when the run is bigger.
I can not explain it like Mighty because of the language barriere. The technical stuff is on his part. But what is shown on the picture is the basic of it. Observation and trying will make it understandable for you.