The money-making zone is a trend in a given time frame between two trap-zones:
- It starts at the end point of the previous trap-zone
- It ends at the start point of the next trap-zone
Below is my classification of the money-making zone:
- Bull's money-making zone (Bull-MMZ)
- Bear's money-making zone (Bear-MMZ)
- the money-making zone with a UP trend is the Bull's money-making zone (Bull-MMZ).
- the money-making zone with a DOWN trend is the Bear's money-making zone (Bear-MMZ).
- Life starts at the end point of the previous trap-zone
- Life ends at the start point of the next trap-zone
thx Tiger! Question for you, does trap zone normally end with violent move to break out the zone.
ReplyDeleteHow do you deal with fake break outs?
Enjoy your posts.
bokchoy,
ReplyDeleteUsually, the trap zone will end with definite MOVE, very violent, to breakout or break down.
So far, it is just based on the experience and chart reading to know if its real or fake break outs. But there are some other clues, for example, the first breakout or break down will have a good chance to fail.
This is a good research topic I am currently doing now. The key is to find the pivotal point,namely, the end point of the trap-zone, then it will be real to break out or break down. Moreover, even the move after the last breakout or breakdown is not very measurable, you still can make a nice profits, at least from the pivotal point to the boundary plus any measurable move.
I will keep posting any findings I made here and share with people and friends like you!
Tiger