In a sense those lines indicate support and resistance for the short swings. The other thing is if you leave the indicator on and then switch to daily charts. Draw a Fibonacci Retracement using the last line. You can go back to the 4 Hour chart where you are trading and get a nice idea of where price could bounce up next or potential targets.
One suggestion though: I seem to always miss the initial printing of each line, and therefore enter the trade late (or not at all). Would it be possible to make it beep or something when a new line is printed?
Thx for the input guys. We are making history on this system because this system is being made as we go. I think you have a point Rolf and Actually... I am going to production of video using cam studio to go more in depth about it over the weekend.
I made a discovery on how this strategy will work amazing with a Fibonacci projection allowing you to trade either Daily charts or H4 time frame. So this way mmccor05 you won't missed the lines and know exactly how far you are in price and have profit targets and have more ideas on where the price is going. Giving you a foresight of the market.
Now the fibonacci projection is not the same as Fibonacci retracement, this is going to be very interesting so be on the look out on how this tool will work. Hopefully I can finish the video production and have the update on Monday.
The Fibo Expansion doesn't work for the same time frame. It has better results if you use it on Day charts. One thing that can help you signal the end of one line or the beginning of another one is cruising to smaller time frames. So lets say 15m is forming a down line and you are trading an up line on h4.. this could give you a warning that price action is changing.
The other thing is when you see small lines form on smaller times frames real quick that usually confirms longer movements down. I will make videos but I am still testing some stuff. They should be available soon.
Since my Zig Zag strategy in forex is manual... sometimes I have to sit in front of the computer and watch price. Not anymore... I found out that FXCM has free alerts txt to my phone and also news alerts of the currencies I select. I think this is an awesome free service. Check it out!
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