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
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
Zizzags are simply Fibonacci Retracement Extension and projection