harveyspecter wrote: Tue Jan 25, 2022 12:18 pm
Thank you for your response! I think people are misinterpreting what I am saying. I know that the semafores will continue to repaint since that is what they're designed to do. My problem/question is the trading rules Xard is giving. In his example, he took 2 short trades that were against the bottom Orange ZZ line. Obviously, price can continue down and the orange ZZ will repaint which it did but according to Xard's rules which he quotes with every post "Orange ZZ is your Bias" so those short trades he recommended as potential trades would be invalid since you're not supposed to take trades against it (even though it repaints). I completely understand waiting for the trendline cross to confirm it's just the trades Xard and others are posting as successful trades are not valid in "real time." As I have stated before, I have read the thread all the way through 2 times now and have been here for over a year but no one has addressed this specific issue.
Thanks everyone!!
XARD: You are 100% correct, I get it now. The trades taken on smaller TFs are as you say invalid ones as they go against the larger TF and it is these trades that are confusing so many people. Don't get me wrong, I use the Orange ZZ line on the 30m TF as my main goto Bias for seeing the greater picture but I can't help myself for not wanting to collect additional Pip$ alone the way on the smaller TFs. After all it is the same process being played out on a smaller fractal. In future I will only post valid trades off the 30m. This should stop the confusion.
There is a saying
" EVERY trade is against the TREND" , ALL depends on which time frame you are looking at! There are pullback trades, reversal trades, counter trend trades!
Xard's system can be used to trade any of those methods! You just need to understand how zigzags work, how semafores work, how they can and will repaint, DON'T use them as immediate signals to enter a trade!
Understand Xard's system is designed to work in market cycles of highs and lows ( semafores and zigzags), a confirmation signal (trend line crossing, 2nd dot), a safety ( Open line - buy signals above and sell signals below), an entry signal ( RSIOMA, VQZL, TDI-RT, RSI-MA cross, trend line cross, candle color change), and EXIT signal ( white ZZ line, Fibo 38.2% or 61.8%, Murrey Math).
I can undestand how people are getting confused by higher time frame orange ZZ line, WHEN a NEW orange ZZ lines forms in the higher time frame, you have two options:
1) WAIT - wait until trend line cross and/or 2nd dot to confirm the ZZ line has stopped "GROWING" or repainting! then start to take entrries based off the orange zz line ( less risk)
2) Ignore the "NEW" orange ZZ line - whilist the new zz is yet to finish "GROWING", you can continue to take signals and trades from the previous orange zz line stop.
In either case a knowledge of the instrument you are trading ( how it behaves, how it moves and how much, how it correlates EG. if crude oil goes up, USDCAD drops, if interest rate goes up, gold drops, bond yield increases gold drops, AUDUSD up USDCAD down etc), the time of the day ( which market session Asian, London, NY), the position of that instrument ( close to support or resistance?, reached max daily ADR? or maxed out weekly ADR?), any major news release? ( NFP? Int. Rate? CPI? ) etc etc ... will allow you higher % win rate.
As was said earlier trade the progression, not the regression