The market moves in a ziz zag mannersom3nam3 wrote: ↑Thu Jan 07, 2021 1:43 amI have some question about the dots and how to trade them best.

The dots have a degree of importance as shown below. But is that because they represent different timeframes? For example the yellow squared one is a 1 hour dot? Or is there another reason why they get different colors?

Another question is how you guys would have entered the trade after it showed a green arrow and some consolidation.

PS. I have read the pdf file with the examples. I am just wondering what you guys would consider in this situation. Thanks in advance!

Every peak of a ziz zag either low or high is known as Swing ( DOTS BOXES ARROWS ....)

Every Swing is important but some are more important than the other

the degree of importance is call level level 3 > level 2 >1>0

how do you know the degree of a level the degree of a level depends on rhe convergence of a swing point at that level

for example the big box has about 3 to 4 converge at the same point click your zizzag bottons 1, 2 and 3 to confirm this

while the dot is of lesser numbers or just a minor swing

NB

Potential Reversal Zone (PRZ) (BIG BOX IN OUR CASE )

“History has proven that a convergence of Fibonacci numbers

and price patterns provides a highly probable area for a reversal.…

This area of convergence is called the Potential Reversal Zone (PRZ)

When three, four, or even five numbers come together within a

specific area, you must respect the high probability for some type

of reversal.”

Zizzags are simply Fibonacci Retracement Extension and projection