achooblessyou wrote:EG 123 imminent? took the Franken-break late last night. Traded it Lem style with a "123" drop back into the consolidation zone using supply zone areas. Didn't actually take it as a 123 but it ended up forming one
Nicely played. You'll often find that these early session moves will morph into a 1-2-3. Happens a lot on the reverse move out of my morning DAX. Nice to know.
You always told me you traded it that way. Should have listened XD
Lol. I find I automatically look for them now, I don't even know I'm doing it.
Idk gn is looking a little dicey might not be running out of steam. Swis and EG look good though. Unfortunately my broker is exculsively Forex no jpy225 for me
So here is the quick and dirty on zlines for ya. the concept is a zline is an area where price leaves from (with momentum) and traders are sitting with profit, that price is likely to return to, to zero those traders (breakout traders that moved there stops to breakeven) and then continue in the same direction.
It was originally meant to be used on HTF 4hr and up and on back to back candles. So you would have candle 1 which is a smaller candle, candle 2 which is momo (body in direction of profit BDP) and the 3rd candle that wicks back into candle 2 then continues in candle 2 direction (wick in the direction of loss or wickdoll).
That's the basic's. It has morphed and changed as more and more members have used it and added to it.
O yea and on the momo candle the open to the 50% area is called the mighty zone (MZ).
Here is how I played the ES today using the zline concept. We were at a weekly and daily zline, so I dropped down to the 15m for entry. You can then see 5 potential targets based off of either the weekly or daily chart.
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