Simple's Green Room

[pennies2007]

Here's more food for thought. During retraces, a consolidation zone will appear...call it a CZ zone for short. During my time in the Skype room, I ran across a trader who uses these things almost exclusively to make money day in and day out.

What he waits for is a break above or below a consolidation zone, either for a trend continuation play or a reversal play depending on the setup.

This is really nothing more than simple support and resistance. Price action floundered around inside that CZ box early this morning. Price finally broke out well above the CZ box and has now come back down to test it as support instead of resistance.

Since we now have a confirmed TDI breakout and a price action breakout all at the same time, we can surmise that EA will move higher from these levels.

So basically you have to watch and process all sorts of information when trading. Watching just the indicator or just a moving average or just the price action won't do it...you have to be able to read the whole package like a book instead of just reading a single page out of context. If there is a holy grail, that's it.

Same 5 minute chart...