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You make a good point about the trigger lines. On this 2nd trade you show that would not be an entry anyway as the ZigZag is making LL's without a dbl btm divergence. this must occur in order to go long.
Just because you are at the MA if I see your chart correctly does not mean you buy there
Charles
Can you help answer these questions from other members on NexusFi?
the lower low on the 1508 is the problem here - you did a good job seeing the 377 divergence. You needed the 1508 to dbl btm and create the "W" pattern
This segment of price action is interesting as it shows the limitation of the ZigZag indicator. That's true that price made a LL but if we look at volume at price or volume under the hood, we can observe that price retraced to a high volume node. Typically, this is where the leading force of the moment will reassert its dominance. I am using a fractal indicator that uses 5 bars as resolution and the little swing in the middle of the larger swing is not apparent. Because of this intermediate swing we may have the impression price made a LL while in fact it is debatable. Using a custom profile applied to the segment in question reveals this information.
It all depends on the settings of the zigzag indicator. Personally, I do not consider that a LL. but that's why good methods have rules. Black, white, or gray, stick to the rules of the particular method, and the method's expectancy will prove itself.
By the way, I like this custom profile tool. Maybe we can get @gomi to add that function to his indicator
Here's a new version that allows you to add custom profiles with the mouse.
Here's how you do it : type "insert key", the status message will show "Click to select Start Bar", then choose first bar of profile, the status message …
