paweldobkowski wrote:aliassmith wrote:for those watching, Zline are still alive and well
Also I seen this similar pattern forming yesterday at the open.
Risk was $40/contract
Reward was $160/contract 4R
A "responsible" amount of contracts would be no more than
Account size/4000 which is about 1%
i want to add something also
for those who are maybe confused and dont know which way to go
because you see the Zlines but you also see me trading something completely different
its not
zlines are actually very close to what im doing
its order flow basically
its a way to trade TRADERS instead of CHARTS
although it might look like a simple chart pattern
AND YOU CAN TRADE IT AS SUCH
but it implies much more ---- if you really understand it
Zero Line is a place where it "hurts"
the industry term would be a "squeeze"
you just need to learn to see who is getting squeezed and who is squeezing
as MightyOne stated MANY times its a TOOL to view the markets in a different way
there are MANY traders here who took it and made it "their own"
including me
it was a gateway drug (or a gateway line lol)
where is Mira btw?
Squeeze, I'll have to look into that.
As for zlines, as MO describes them and I'll paraphrase.
Imagine market participants being in a trade where they are up after 1 candle.
once in profit after this breakout trade they are looking to "protect" their gains. (fear)
So, they move their stops to breakeven, breakeven +1, etc.
In this area there will be a lot of orders sitting there creating a "barrier"
Now we don't if the barrier is strong enough to hold but I creates an edge fading the area.