GBP/USD 8H Z PATTERN,
Another setup emerged on the Gbp/Usd in the direction of our anticipation. Price easily managed to hit
classical TP level and beyond. Let’s see where it will go from here.
Relevant Line chart
There are quality setups pouring in lately with easy gains to be made. I honestly hope that peers take advantage
of this simple but yet so powerful and core pattern in order to optimize trade levels and maximize profits.
I wish all the very best.
Cheers
Hi harganoff,
That sure was a superb example of the Z Pattern!
Well spotted, and it seems to slam lower.
Thanks for sharing.
Cheers
These are some other setups I played lately.
GOLD 8H Z PATTERN,
For those of you who trade metals this setup was a must. It was in confluence with so many things ie;
recent downtrend and pinbar. In other words a Z pattern in that stage was a golden opportunity!
Price managed to push down and if in line with my anticipation it will continue to do so.
EUR/NZD 8H Z Pattern,
I wanted to post this setup Live (I even took screenshots and had images ready to post) but been super busy
and couldn’t get it posted. However price made a move higher and got caught by a counter Z pattern on the same
TF (timeframe) knowing that the pattern was targeting my initial entry point I took a safer approach and closed half of my position and let the rest play out. And it played very well, as a matter of fact both patterns played out smoothly.
Making the change
I can imagine many traders feel overwhelmed by seeing new techniques or SYSTEMS. You might feel ‘‘I’ve already got
too much on my plate’’,or ‘‘I need to get profitable with my system first.’’
Let me reassure you that capitalizing on the Z pattern doesn’t counter any system you are working on at the moment.
It is there to compliment it! Making what is already there, much better.
Getting started can get tough. Here is where I can help. Ask,ask and ask again in order to clear any doubts.
Post if you think you see a Z pattern and we can discuss it here. And for all of you who are thread shy you
can always ask in discretion. I’d be delighted to help if I can.
Wish all the best.
Cheers
Hi Kasravi,
Is the following a decent set up? … My platform doesn’t have an equidistant tool, so I have to do these by eye.
and the line …
thanks!
Good morning,
Possible Z pattern on USD/JPY 4 hour although to me it looks like its about to be invalidated by completing outside the channel:
Happy Friday everyone 
Padraic
Hi Padraic,
By the looks of it, it’s going to close past the channel.
It’s a shame it could be a neat reversal play…
Thanks for sharing
Cheers
Hi Brutus,
Well spotted, it is a Z Pattern just two things I want to add:
1-the pattern is not a quality pattern,as you can see it’s not a neat ‘Z’ .
It sort of dropped near the end rather than touching the line,do I make sense?
2- the pattern got invalidated before entries got triggered ie; the low of the pattern was taken out.
I noticed your channel is correctly drawn on the line chart but they seem to shift on your candlestick chart,am I right?
Thanks for sharing.
Cheers
Tutorial:
How to catch bigger moves with the Z Pattern?
This Pattern allows us to pinpoint levels from where price starts to make a major move. The beginning of a new momentum that drags price for days and several hundred pips. Moreover can we take positions in order to get inline with the already existent momentum.
See examples below;
This was a quality Z Pattern which pinpointed the exact reversal and pulled price down.
In this example Price was already roaring and the Z Pattern presented an excellent opportunity to jump on
the train with a massive pip haul.
Price on the chart was rapidly falling but the Z pattern was a signal to end the down momentum and flip
the price swing.
As we can see from the examples above the Z pattern is very versatile and powerful. But how can we benefit from it? Actually how can one trader make such big gains like on the charts above?
Anticipation, is the answer. But what is anticipation, what should we anticipate and how?
In order to answer these questions we need to unlearn and relearn some very basic trading concepts and alter our understandings on how we see the markets.
Firstly, we need to realize that price on the charts move from value zone to value zone. In order to do that it is dependent on time. That is why we look at price through time spans that we call time frames. And each candle of a time frame represents the markets perception of value. Once we see a cluster of value on the charts, we inevitably look at a value zone. Commonly known as support and resistance. That is the backbone of our anticipation…
I’ll explain more as we go on with this thread.
Wish all the best and a successful trading week.
Cheers
A refreshing, we’ll reasoned and considered view. Please do continue.
Thank you. Nissanman
[U][B]Tutorial:
How to catch bigger moves with the Z Pattern?
Continued…
[/B][/U]
Now that we know that price on the charts follow value zones that act like magnets. All we need to do is to
position ourselfs with the major move. In order to achieve that we need to render our charts clear and simplify them.
So that we can see the true direction of price. Like Bill Williams in his Chaos Theory said: ‘‘Everything moves in the path
of least Resistance.’’ We need to navigate through our charts and find that path. The Z Pattern will be our trigger point.
But how can we simplify the charts? What role do value zones or s/r levels play in that procedure?
Have a look at the chart below;
If this chart is to go further up, where would it be resisted? If it was to drop, what level would it find support?
Whether you are a seasoned trader or just started. The first thing that comes to your mind would be:
''If it goes up, it would be resisted at where it stalled last time.
If it goes down, it might hit support at various levels.’’
Now, let’s see what happened…
Price did move up and reached a level where it stalled before, as we predicted. So we managed to anticipate a very basic fundament of the markets. Which is price moved from one value zone to another.
I want to take this to the next level and show you a chart that is more complex to read.
Have a look at the chart below;
That chart gives you somehow an ackward feeling. No more straight lines or clean swings like the first one.
What to do? Shall I leave it and wait untill price loosens up?
Not really. I got a remedy for you. Let’s lower the timeframe and re-evaluate the situation.
Have a look at the chart below (which is the same chart as above but with a lower timeframe);
That looks much more pleasent to the eye. We take it from here and ask the same questions again:
Where will it find support or resistance? Where is the next value zone and what is the path of least resistance?
Now, let’s see what happened…
Price found a direction and probably hit a level which you anticipated.
With this mindset and methodology of simplifying you’ll be able to trade every chart. However I want to emphasize
that I only showed you charts where price was resting. That’s the only time you want to make decisions
regarding price direction. And that’s the only time you should consider signals.
However, all that is just one side of the coin. As we preogress I’ll discuss in depth price anticipation,
and cover how to bring anticipation and the Z pattern together in order to catch bigger moves.
I wish all the best.
Cheers
GBP/USD 8H Z RECAP
It was a rough ride, but Price pulled away and dropped like a rock!
This trade was a superb example of ‘how to catch bigger moves with the Z pattern’. I posted about a 6H Z about 2 weeks ago, which didn’t have the strenght to pull price down completely. Then last week an 8H Z presented itself which finally
had the needed push to slam price lower.
From here price might turn or might go lower which would be in our favour since we still have a portion short on this pair.
I wish all the best.
Cheers
USD/SGD 1H LIVE SETUP
Still a few minutes to go before the candle closes but it looks like promising z patterm that could bare the momentum to
push price lower.
cheers
GBP/AUD 8H Z (invalid)
As visible on the chart above that pair was very close to complete a flawless Z pattern. But it failed to close at the channel line, thus rendering it invalid. There might be a signal on other timeframes that we could consider in order to reverse the momentum.
Relevant line chart
It is important that a trader knowes the environment he/she is trading in. The end of the year is nearing and bizarre price spikes are common. Thus anticipating big swings with tight stop losses (eventhough with the right analysis) can get you stopped out. Keeping that in mind will save you money.
I wish all the best.
Cheers
GOLD 8H Z Trade Management
We had a superb Z pattern to go short on gold. While price is dropping lower it reached a critical level.
So far with a R:R of 1:8 , we’re well in the money and taking some more money off the table is a smarter play.
I am happy to leave the trade to go into the next year and see how the rest will play out.
There are some neat Z patterns on different time frames on the British Pound pairs. I wonder if anyone is considering taking any?
Wish all the best.
cheers
GBP/AUD 8H RECAP
There was a neat Z pattern on the 30m chart, which put us inline with the 8h Z pattern(which failed to present us a valid Z earlier). As visible price reversed and is very close to the classical TP level.
Hope everyone had a great week, wish all the best.
Cheers
Hi All,
I finally made it online and want to wish everyone a Merry Christmas!
A few take aways for the holidays;
‘’ I didn’t change,
I woke up’’
Becoming profitable has little to do with your system if you don’t have
the right mindset. In the coming days before the new year I will tackle
all the reasons that prevented you from making money. So you can kick start
a new year with a fresh mindset.
We will be looking at all the core concepts that threaten your profitability
in order to boost your abilities as a pro trader.
I wish all happy holidays and enjoy the recovery time from all the trading stress.
Cheers
Have you noticed that most successful Forex teachers can teach you a great money making method but it doesn’t make you money? They write great psychological articles and go through an ‘In depth’ tutorial with you but yet it doesn’t seem to change your account balance. In the end this is what it is all about. You didn’t come to the FX market and it’s related Forums to just spend your time on a good read. You came to make money!
But why is it not working for you? It seem to benefit them, no? I mean you try and try and do everything they tell you to do. And when everything lines up on the charts and it is a text book scenario you enter the trade. Bam! You get stopped out. Of course once you consult you hear that it wasn’t the right setup or you need more experience. It sounds logical and you move on.
Then you think to yourself ‘fine I take it slow’. Soon after a trade gets posted that you wouldn’t even consider wasting a thought about, yet it turns out to be a mega winner. Your self criticism kicks in and you blame yourself for not seizing the opportunity and regaining your previous losses. Then you subconsciously take it fast and not slow anymore. You place another losing trade and ride your account further into a minus. What to blame? Inexperience? Fear of losing out?
Everyone tells you that you couldn’t keep up your discipline,trading plan or both. Truth is you want to make that money.
I mean “Even a stopped clock is right twice a day.” The pairs on the charts move hundreds if not thousands of pips every day. How come you can’t squeeze out a winning trade? The answer is even if you had success for a while and now have reached a dead end. Even if you have a proven system but yet failed to make money.
It’s been nothing but a ’ House of Cards’. The foundation has to be right.
“Education is not the filling of a bucket, but the lighting of a fire.”
In the coming days, we will focus on how to reach the ultimate goal. Which is making money in the FX market. We will leave behind all the cliche’s about inexperience and other Trader crushing concepts. And foster a way of trading that actually works!
Wish all the best
Cheers
[QUOTE=“Kasravi;582219”]Have you noticed that most successful Forex teachers can teach you a great money making method but it doesn’t make you money? They write great psychological articles and go through an ‘In depth’ tutorial with you but yet it doesn’t seem to change your account balance. In the end this is what it is all about. You didn’t come to the FX market and it’s related Forums to just spend your time on a good read. You came to make money! But why is it not working for you? It seem to benefit them, no? I mean you try and try and do everything they tell you to do. And when everything lines up on the charts and it is a text book scenario you enter the trade. Bam! You get stopped out. Of course once you consult you hear that it wasn’t the right setup or you need more experience. It sounds logical and you move on. Then you think to yourself ‘fine I take it slow’. Soon after a trade gets posted that you wouldn’t even consider wasting a thought about, yet it turns out to be a mega winner. Your self criticism kicks in and you blame yourself for not seizing the opportunity and regaining your previous losses. Then you subconsciously take it fast and not slow anymore. You place another losing trade and ride your account further into a minus. What to blame? Inexperience? Fear of losing out? Everyone tells you that you couldn’t keep up your discipline,trading plan or both. Truth is you want to make that money. I mean “Even a stopped clock is right twice a day.” The pairs on the charts move hundreds if not thousands of pips every day. How come you can’t squeeze out a winning trade? The answer is even if you had success for a while and now have reached a dead end. Even if you have a proven system but yet failed to make money. It’s been nothing but a ’ House of Cards’. The foundation has to be right. “Education is not the filling of a bucket, but the lighting of a fire.” - William Butler Yeats (1865-1939) In the coming days, we will focus on how to reach the ultimate goal. Which is making money in the FX market. We will leave behind all the cliche’s about inexperience and other Trader crushing concepts. And foster a way of trading that actually works! Wish all the best Cheers[/QUOTE]
Looking forward to it!
Only read further if you are willing to leave your ego and misconceptions at the door. Whatever you learned so far,no matter how long it took it doesn’t matter anymore. Let your guard down and put aside who does what, or earns how much or how big their account is or how flattering they talk/write and how remarkable their results are. This is about you and about making your money work for you. Thus only you as a trader can make it happen the rest is just a show.
Punching a boxing bag with fists of fury topped with jabs and hooks combos is easy. But once you step into a boxing ring and you and your opponent start to work each other, fatigue kicks. When you are fatigued your brain shuts down but your trainer shouts out commandos such as work those jabs! Keep up your footwork! Don’t let that bloody guard down!.. He’ll do the thinking for you.
In every trading session you encounter fatigue. It is not the normal physical fatigue you are used to when all the lactic acid is rushing through your blood and your arms and legs feel pumped, making you feel very hard to move. It is mental fatigue! You notice this type of fatigue long after the damage is done. However the effects within a trading session are crushing. Since nobody is going to shout at you like in boxing while you trade you need to take care of that yourself. It is part of the business and the key reason why all the teachers out there are not able to make you money, it all comes down to you and what you actually do while you trade. Fx teachers explain all the things you need to know about their system and expect it to workout flawlessly for everyone but it simply doesn’t.
The first thing you need to learn in order to gain is to find out what makes you lose? Mental fatigue, is a result of chemical reactions in your brain originating from stress,dehydration,sleeplessness,workload …etc. But how to prevent it? What are other causes? What are the symptoms?
Personality traits can contribute to mental fatigue such as; perfectionistics(nothing is ever good enough) or needing to be in control. Your type of thinking prevents you from success. Everytime you compare yourself to others, everytime you look at your charts and see those massive moves that you missed or look at your account and see red. These are causing you mental fatigue!
Mental fatigue will leave you emotionally helpless,trapped and defeated. You’ll feel a sense of failure to yourself. You’ll lose your motivation and feel not a sense of accomplishment. The outcome on trading is an increase in failures. Inevitably costing you money. All these symptoms are the harsh reality of trading. Thus you need to take care of mental fatigue! Otherwise, not even the best system can save you.
[B]How to cope with mental Fatigue?[/B]
I strongly believe that making money in the FX market is is nothing but completing a check list. I mean following a set of rules that either suggests, opening or closing a position. The rest falls within those two categories. Coping with mental fatigue within a trading session is not any different. I’ll lay out all the fatigue originating sources and on how to prevent them from interfering with your trading.
Your anti fatigue alarm should go off everytime you encounter these situations;
-you notice a missed opportunity, that would have resulted in a hypothetical massive gain. You never made that amount of money, so you are day dreaming (notice that getting stopped out before your trade kicks off falls into this category too).
-you open a trade based on your bias and following your system, yet the market turnes completely around and goes south.
Your job is to analyze before you open a position, anything that happens afterwards is not anymore in your hands(notice that it doesn’t mean your system sucks, it simply means this one trade did not work out).
-you see a trade opportunity that doesn’t completely line up. Where your feelings tell you, that this is a sure winner. Regardless of the outcome, you cannot trade based on your feelings and if that means that you let a few winning trades go than by all means let them go!
-you are in a position that you believed is in line with your trading system but after a while you realize that you’ve been wrong. That means your perception of taking a trade at that time was manipulated by either yourself or influence of your environment. Eitherway, a successful businessman cuts losses short when he/she sees a flaw. So should you.
There are surely more mental Fatigue factors but these few outlined are some of the very prominent ones. Everytime you encounter any of those negative factors you need to deal with them, and ignoring them is the best way to make them bigger. [B]Keep in mind that being tactful to yourself will take you one step closer to making money.[/B]
Stay tuned for the next step…
Wishing you all the best.
Cheers
