I use 3 Primary indicators to determine trade entries and exits
1) Pivot points - 1yr (Thinnest), 2yr (Medium), and 3yr (Thick Lines) are plotted with pivot in yellow, Resistance bands in Red / Pink hues, Support in Blue.
2) Fibonnaci Bollinger Bands - Midline in purple, 25% and 75% in yellow are buy and sell zones
3) Linear Regression - Linear regression dictates price action outside of major fundamental events.
For trades, I nearly always enter buys below the Bollinger midline and more typically like to buy in the bottom 25% of the Bollinger Band. I look for the linear regression channel to be intersecting price action, and usually target a pivot point for exits.
For ZRX Daily chart, we see the Red/Yellow LR channel has pierced the bottom 25% of the Bollinger Band, indicated by the thin yellow Bollinger Band. This is typically a reliable, low-risk entry. Once this occurs, I look for price action to travel through the linear-regression trend line as this indicates to me that sellers are exhausted and there is a solidly established price floor strong enough to push through the linear-regression line.
For ZRX, you can see that this has occurred several times in previous years, with a subsequent rise in price of 2-3 times the original buy zone.
For this trade, I am going long at .26 with a target just below the 3-year pivot of .65, which is solidly in the middle of that 2-3x range. I typically trigger out just below major pivots to get the best chance of trade execution while locking in solid gains.
Stop loss set at .20, which is the recent low.
1) Pivot points - 1yr (Thinnest), 2yr (Medium), and 3yr (Thick Lines) are plotted with pivot in yellow, Resistance bands in Red / Pink hues, Support in Blue.
2) Fibonnaci Bollinger Bands - Midline in purple, 25% and 75% in yellow are buy and sell zones
3) Linear Regression - Linear regression dictates price action outside of major fundamental events.
For trades, I nearly always enter buys below the Bollinger midline and more typically like to buy in the bottom 25% of the Bollinger Band. I look for the linear regression channel to be intersecting price action, and usually target a pivot point for exits.
For ZRX Daily chart, we see the Red/Yellow LR channel has pierced the bottom 25% of the Bollinger Band, indicated by the thin yellow Bollinger Band. This is typically a reliable, low-risk entry. Once this occurs, I look for price action to travel through the linear-regression trend line as this indicates to me that sellers are exhausted and there is a solidly established price floor strong enough to push through the linear-regression line.
For ZRX, you can see that this has occurred several times in previous years, with a subsequent rise in price of 2-3 times the original buy zone.
For this trade, I am going long at .26 with a target just below the 3-year pivot of .65, which is solidly in the middle of that 2-3x range. I typically trigger out just below major pivots to get the best chance of trade execution while locking in solid gains.
Stop loss set at .20, which is the recent low.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.