newscalper wrote:Yeah, I know what you're saying: I was in the long earlier from the weekly mighty zone up and the morning breakout. That didn't work out too well because I'd added to my position just before the retrace - price had gone through a minor resistance so I added. Then it came back to kill my average so I only got 10 pips out of about a 60 pip move.
However my view is if your looking to trade a daily zline there has to be momentum on the smaller timeframes to get price up to the line within the day, no two ways about it, if it just saunters up it will become a multi-day s/r play.
Often, before price turns there is momo up into an area which fakes out traders looking for further longs. If that's what you're looking for - momo up/ momo down, it's just a CC pin bar.
My entry in this case isn't a momo on a shorter TF play it's just a close over/close under play. I could see the small line there below but 'anyone with more than 2 lines is a fool' - my two lines show the 2 fat cats - close over/under and continuation and I'm committed to the trade unless price closes over my line. It wasn't until the large momo smashed through against me that price closed over the line.
It brings me back to what has been messing me up, I see minor s/r EVERYWHERE. If I take note of them I see no reason to enter. If you are trading retracements, there is always minor support or resistance above/below so I don't see the logic in saying "I wouldn't have taken it because of" because if that's the logic you will never take a trade. You would imagine that daily supply would trump 15 minute demand but again and again, for me, for whatever reason, it's proving not to be the case. I'm starting to see why (I think this is what he does anyway but knowing me I have it arse about face again) ES trades it the other way around - how his charts look to me is that he fades the longer term move going from 5/15 minute momo (say) into prior 1hr/4hr etc s/d areas.
if you read the old threads such as NLA or Lukx or any of the other countless threads on zerolines you would find that the reason why alot of people struggled was because in many instances, price was saying to go long and short at the same time.
and thats where many people struggled and it pretty much became a gamble for many.
and as you can see from what happened with GU, the higher timeframes don't always help you out either, because the h4+ was indicating a short but the 15M was indicating a long.
that's why you need to observe what is happening and make decisions.
like i said before, i assumed the pound would drop further thats why i went short however since it stalled in that specific area and started gaining momentum, i had to bail.
the only way you can recognise these patterns and clues is through experience. and i mean months and months of staring at the charts for 12+ hours days. and pretty soon it will become second nature.