…continued
Which comes conveniently inline with the eur/usd 8h setup from yesterday. Keeping in mind that today is Friday, keeping a tight SL is important.
'Best
Hi, I am going thru the Z Pattern thread and am looking through all of the posts but for some reason I am having a hard time understanding how to apply the Z Pattern… From what I understand you need to first switch to the line chart and identify a Z shape? but I for the life of me cant identify the “Z” shape of the pattern, maybe I am doing it wrong? how do u identify the Z shape? can u tell just by looking at it or?
My chart is attached
Hi and thanks for your question.
I’m momentarily not at my desk but to give you an answer;
First of all zoom all the way in. You want to examine the line charts from close up.
Secondly, outline the 3 pattern types and have a picture of them handy to compare them with the charts.
Thirdly, start off from the trade examples I posted here and go back to the exact date on your charts to locate them.
You should be able t o pick it up from there.
Important note: You might notice from time to time that there is a small difference from your charts to what I posted here. That is due to a different Price feed brokers use,so don’t be disappointed. More importantly, when you are backtesting you have to have a sharp eye on news such as interest rate decisions, press conferences and NFP. You’ll need to have a note on when these were released. Moreover do not consider entering setups before londonopen and after NY close.
That should do, don’t hesitate to ask any further questions.
Have a good Weekend
'Best
interesting system but need very hard working to look at the chart. Looking forward to this and thanks for information!
Spotting Z Patterns on the line chart can give traders a real headache. Z Patterns are very fading on the line chart and it doesnt help that traders in general spent very little time on them, not giving their eyes enough training to get accustomed to line formations and fractals. This makes seeing Z Patterns on the line charts difficult at times.
Unfortunately there is no shortcut in Pattern spotting. However by zooming in and tapping forward on the charts it will become much easier to point these out. See below 3 consecutive Z Patterns that emerged on friday;
Eur/Jpy 1h Line chart
The red lines represent the Z Patterns. Notice how the last two patterns shared the same line.
Let’s take a look at the candle chart;
-Arrows in yellow,purple and red represent the lines from the line charts.
-Dotted channels were used to verify each Z Pattern.
-Coloured boxes were Take Profit levels.
Z Patterns emerge all over the charts and over all trading sessions. With a little effort and practise traders can develop their skills and spot Patterns on the fly.
Wish all a successful trading week.
Best
Great analysis Kasravi,I think in the future ,every broker platform will not have a tool to draw Z pattern,you know what i mean,
Three quick questions
1.Can we use your strategy if price makes neat Z pattern right after Big New like NFP
2.I see that you usually trade in H8,H4,H1 and rarely in M30,other time frame have similiar result?.Sorry i am little busy to back test
3.I see in the other website Zpattern+Trend =Zrend and name Miad Kasravi.Is that You?
Hi dksticket,
1-Yeah, there are exceptional trading opportunities with the Z Pattern after big news releases. However NFPs are on Fridays and after an NFP price burst there is not always enough push to hit TP targets.
2-There are Z Patterns across all timeframes and currency pairs. The high quality Z Patterns however, tend to emerge on the 8h,4h and 1h charts.
3- Yes that was me. I’ll promote the page once I completed it, so stay tuned!
Best
USD/CHF 1H SETUP RECAP,
This Setup was posted on Friday. Although the trade got dragged into the next week it managed to hit TP level with a slow and steady move. And as visible on the chart above price travelled far beyond.
Best
Hi fellow traders! I took my first shot with this system today, USDCAD H4 timeframe. In the image you can see the spotted Z. What do you think? Did I do it right?
The USD/cad 4h Z Pattern was a very neat pattern. So well done for spotting it.
The reason I didn’t take it myself is because, it triggered outside market hours. Z Patterns are best played during Europe/UK sessions and Us overlap. Any other time and market won’t have enough power to push price to Tp levels. Doesn’t mean your Setup won’t workout though.
Best
Well, it didn’t workout, maybe because of the reason you pointed out. However, another Z might be forming right after that one, and this time it may take place inside the overlapping sessions, so let’s keep an eye on the chart!
Hello Kasravi, hello all
i have read all post from your interesting Z Pattern strategy and i have a question:
i use daily charts and when i put a buy stop on a pin bar, for a pair with spread 2 pips i use an order with 10 pips over the max of the pin bar (approximately 8 pips + spread). You must consider the spread and a few pips for the order, i think.
So, in your different time frame how much pips + spread i must put from the max of the pin for a buy stop regard 1H, 4H, 6H, 8H, 12H time frames?
Thanks
Hi Child,
Good question as I’m sure many traders have the same.
Every broker offers different spreads in different market conditions you’ll need to apply trade buffers accordingly. That however is only a problem when you are looking to buy. When you are selling you would see ask charts by default, that means the spread is incorporated in the charts and inevitably in the levels you see too.
Hope that answeres your question.
Best
Hello kasravi, so you consider only the spread and no extra pips (for example 1 pips for the break min or max)… Thanks for the reply
hi kasravi,
first off i wanted to thank you for such an awesome thread! been reading it the past few days and executed my first successful Z Pattern trade last night.
AUD/JPY 1hr, approx 17hours ago during the Asian session. (sorry I didn’t include a pic, can do so later tonight).
I realize the trade my have been risky as it is not the 4hr chart and it was during the Asian session, not the US or UK, but I found confluence because as it completed leg 3-4 of the Z pattern it also descended to the daily pivot point. Thankfully it bounced up off it and hit TP.
Anyway, I had a question: when I was searching for Z Patterns and backtracking to find the Z Patterns you have outlined in this thread, I noticed my line charts do not line up to the close of each candle as yours do. I can still find the Z patterns perfectly and find valid and invalid patterns, but when I switch over from Line to Candlestick, the channel lines I drew do not intersect the closing prices on the candlesticks.
I noticed 2 other people mentioned this- posts 124/127 and 151/152, and you mentioned in posts 203 and 213 about different price nuances to different brokers.
Do your line charts use the default data setting, the open, or the close?
thank you!
Hi uthuaem319,
I’m very glad to hear that you made profits, good on you!
In post 124 the problem was that either the line charts on that particular platform that the trader was using , was not set at closing prices or the lines he drew just started readjusting each time he switched to the candles chart. That’s what caused the confusion.
In post 151 the issue was simply different price feeds between two brokers. Which is why it helps to always have more than one broker at your disposal that provide the meta trader trading platform .
Looking forward to your charts.
Best
awesome, I see. Thank you for the reply!
here is the trade i took, after looking very closely i don’t think it’s a perfect Z pattern but i’m still trying to figure out the whole lines-lining-up on my charts.
Now I’m wondering if the pattern forming within the GOLD 4H Chart could qualify as a valid Z, since there are many lines between the top and bottom legs of it. Check it out:
.
Backtesting, I’ve seen a few lookalikes which did perform well, and a few which didn’t. What would you think of this one, if it wasn’t being formed outside UK/US sessions?
Cheers!
That was a perfect Z Pattern, which played out flawlessly. Straight afterwards you got another Setup, seems like there was a lot going on.
Best
Hi luisbrm,
I can’t see a valid pattern from what I see on your charts. But it’s just 7am here, haven’t pulled my charts up yet.
You are right about the Z Pattern lookalikes,they work out great. But that’s not always the case. And you’ll notice once they play out they mostly don’t respect our stop levels, meaning price moves radically. Thus not a safe play.
Best