ok, so i talk about the LRC, support and resistance, using the stoch and confirming downturns ready to come back up again with the CCI, but one indicator i DONļæ½T speak of a lot is a horribly maligned creature called the zigzags.
I know they redraw, and for that reason people dont like them, and on the surface, they appear to be correct, but those same people MISS one of the most helpful things about its character that places it right up there NEXT to the LRC as a way of SEEING. (there ARE trading ļæ½systemsļæ½ built around this overlay, but it ļæ½canļæ½ provide signals that can be easily misinterpreted, leading to much screaming and knashing of teeth !
i use TRO 3 semiphore zigzag, but there are plenty out there that all do the same thing, with TROās simply being his version of 10 others that are all pretty much the same !
The basis behind the dots and their numbers is that a NUMBER THREE is a PERMANENT take profit point and a solid support (or resistance) point. The Number ONES are TEMPORARY support or resistance within the main trend outlined by the NUMBER THREEļæ½s !
Unfortunately, while trading, these dots can redraw, throwing the best laid plans out the window ! But I rarely use them for trading (although the number ones work nicely during scalps) What often happens is during high momentum, the number three will continue to redraw either higher or lower, thus moving the tp point ā you can play the moves off the lower timeframes or wait for a true ending and play the reverse, or ANYTHING you may want to do !
HERE is why theyre so nice - - - - -
first, once they have formed and become history, they give you an absolute point from which to measure your fib retracements, and if a trend has taken a few days to finish and you have to go back 5 days to find where it started, dont think thats a small thing !
second ā if you are in an H1 or a H4 trade they will show you exactly where a reversal (causing drawdowns) is going to take place, and THAT aint no small thing either ! Actually, they will show you a reversal in ANY timeframe, but im trying to get to this all in some logical fashion !
gander at the charts ---- we are going to play the H1 today and the H1 shows the currenct price bouncing off the MIDPOINT of the LRC. Notice the huge number THREE up there at the top LRC line, which is a comfirmed downturn. As we state often, the price will move DOWN from the top LRC to the MIDPOINT but that leaves you in the dark as to where price is heading and whats about to happen next. Getting ahead of ourselves at the moment, we pretty much KNOW that the price will head DOWN to the lower LRC cause thatļæ½s what it loves to do, and what the bankers most likely wish it to do, but at the moment its ļæ½play timeļæ½ and so the price consolidates for a while !
While still on the H1 chart, please notice the two NUMBER 3 ziggys, showing the move up and the permanent reversal back down again, which found support at the MIDLINE of the LRC, moved up and hit resistance forming a new number one signal dot (which is a ļæ½temporary support or resistance point inside of a main trend) and has formed at 1.3306, and being a number one, itļæ½s a temporary direction change dot, leading us to believe what was a DOWNTREND on the H1 will now continue as a DOWNTREND ! The accum/dist indicator appears to back this up, while we see the stochastics HAS NOT reached 70 or 80 and is prepping for a turn !
so now we go to the ONE MINUTE chart and find the the price has hit support and formed a big number 3, which means a definite reversal will happen here (which we see it is in the process of doing) BUT the indicators are still pointing DOWN, by golly ! Considering the indicators are still pointing down also, I would imagine we get at least a double bottom BEFORE it starts back up again with a LOT of resistance overhead !
The 5 minute is showing a number one dot, so we have a temporary halt to a downward move, and prob a retrace to the white line or the resistance dots just above it.
The 15 minute is showing a number three dot at the top of the LRC and a lot of ļæ½cyclingļæ½ of the currency, BUT NO NEW NUMBER 3 DOT, meaning its trend move to the downside IS NOT YET FINISHED ! The indicators are verifying and confirming this also !
The number(#1) dot on the 15 (and the otherrs) min is at 1.3260, the same price as the H1 middle point that became support ! What has happened is the currency was in a downtrend, hit a temporary support area (we know the H1 will continue to go down at SOME TIME cause it wants to head to the bottom LRC line, just will get thrown around at the midpoint because momentum was not great enough to carry it through) and since it has hit support, we can now make an educated guess that it will head back up for a while (which is where your drawdown on the H1 SHORT youre holding will come from, and where no one knows where to set a decent sl !)
While looking at all this, please notice that the Stochastics and the Accum/Distrib are BOTH still pointing down, indicating that DOWN is where we should be going !
If one were to check, we would see that ALL charts show the same price where the currency reversed, verifying again our anticipated moves !
Lets go back to the H1 with a fib going from the lower number 3 to the upper number 3 and see what we have ļæ½ļæ½ the upper number three tells us the H1 is in a downtrend, and we see that the upper number 3 is also at the top LRC, so we figure ļæ½no contestļæ½ here !
The price dropped to the LRC midpoint (surprise !) and moved below (see how it hit s+r and NOT the fib, although the fib was close at the 38, but no cigar)
Now while you trade the ups and downs of all the other timeframes, keep your eye on the progress of the H4 and H1 (Especially the H1, because thatļæ½s where the banks take their support and resistance from during the day) WATCH for the dots to form on the ziggy and either GET OUT of the trade at that point, or hang in and understand that a drawdown is coming ļæ½ļæ½ and since you can estimate where the drawdown is going, AND THAT THE PRICE WILL COME BACK, you wont have to get your sl hit, lose your money and complain about how hard forex really is !
And remember, whatever timeframe youre trading, take the H1 and H4 as a lesson ļæ½ļæ½ the H4 is in an uptrend going through a temporary retrace, while the H1 is in DOWNTREND, and has gone up a bit, but expected to drop after consolidation ļæ½ļæ½ DIFFERENT strokes for different folks, BUT THIS IS WHY FOREX LOOKS LIKE ITS ALL OVER THE PLACE ļæ½ļæ½ YOU GOT TO PICK ONE TIMEFRAME, AND WORK WITH IT ONLY, using the others to SEE whats happening to your price at that moment in time.
SO, the little ļæ½golomļæ½ indicator, so hated by so many because they try to use it just to trade from, really turns out to be a shining star on the road to our SEEING what our price and trends are doing !
I personally cant ask more from a skinny 98 pound weakling !
enjoy ā SEE well !
mp
1 min lesson.zip (294 KB)
5 min lesson.zip (259 KB)
15 min lesson.zip (277 KB)
HI lesson.zip (294 KB)
like thinking that when people buy yen, then actually carry it home at end of the day 
