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The Transient Zones indicator description method of trading
In this review we will focus on one ambiguous and confusing strategy called Transient Zones. Let's start with the fact that the author of this "system" offers no ready solutions, and share their observations of market patterns, therefore, all the arguments in the context of "I came here a phenomenal idea, and how to use it you think about it".
However, observations of the author were interested in other traders, so today the strategy Transient Zones already lives its own life, and up to this point was even created by the same indicator. But about all under the order.
Start with the fact that a grain of truth in this method it really is, but based on the articles that I have read in the course of its study, it became clear – the author called a "revolutionary idea" that has been known for a very long time.
No, he's not plagiarized, just the idea is so obvious that it will sooner or later come to any dolgosrochnykh. If the analogy, it is like a wheel, which is thought people in completely different parts of the world, unrelated to each other.
The idea of the strategy Transient Zones
All the instructions that occur by this method in the "Runet", written in fairly complex language. In the beginning do not stall in theory, go straight to definitions and terms. In General, Transient Zones translates as "transition zones", so the whole point system is based on this notion.
The transition zone is the range in which the market will not return, that is the price we have tested, reflected and flew back with no promises to return, for example:
The Transient Zones indicator - how does
For the transition zone is characterized by the following features:
If the price moves up, the upper border region as a result will pass through the maximum price of the period.
If the price moves down, the lower limit of the transition range would correspond to the minimum price for the period.
Information from the Transient Zones indicator
I think this is obvious, since the building layout does not differ from the designation of levels of support/resistance. The only difference is that any, even the weakest level is based on several points, but here we are dealing with one extremum, which is not enough to define the zone, so the second plank Transient Zones is marked by the following principle:
If we are talking about building a resistance area, the width of the range will be equal to the High of the selected period, the second – largest High of the same period. Similarly is defined the width of the bearish zone, but instead takes into account the High Low period, that's all the math, don't even need to paint any complicated pseudo-calculus.
Transient Zones lays out the schedule
Secure the material again, Transient Zones are areas that with high probability the price will not return.
Accordingly, if there is a range where the market will not return, there must be an opposite category, that is, a section on the chart to which the price will work, the author called it "recurrent zone".
Time zones on the chart
In my opinion, the last remark is nothing but an attempt to come up with an original method, which has not been done before. Such maximalism suffers every new trader in the market the value has only one question – how can you earn money?
Pay attention to these two indicators:
Stochastic RSI
The ATR indicator
Rules basic strategies Transient Zones for Forex
First of all, you need to remember this simple rule - the transitional zones are built at fixed intervals of time, and not taken from the ceiling. To simplify the problem, use the same name indicator, the markup I gave examples above.
The markings on the chart - the Transient Zones indicator
If we ignore all the other non-working theory, the main principle of working with Transient Zones is to trade at levels of support/resistance, you should take into account not the latest rectangles, namely, the historical markings, for example:
Levels and operations
This limitation is due to the fact that the latter is frequently updated as price highs and lows regularly updated. Unfortunately, and maybe for the better, in this case, it defeats the purpose of the transition zone per se, because the transaction will be concluded after the price will return back to a previously marked region.
The stop loss is set on a larger timeframe, that is, if the trades are on the H1 timeframe the stop is marked by lows and highs nearby areas on H4 or D1.
An additional strategy that may seem more efficient than the one just considered, is marking the extremes, because the Transient Zones are based on the highs and lows, and it can be used.
This approach is not original, but if you compare arrows of the indicator, what do the signals from the areas built for 6 candles, and readings of familiar fractal Williams (take into account in the calculation of 5 bars), which many traders use to denote local Low and High, the difference in the signal quality becomes apparent:
Strategy based on Transient Zones
Summarizing, we note that at first glance, the idea of the author seems really new, they say, she turns the stereotypical images and allows you to understand the real reason for reversals in the market. In fact, this strategy is significantly inferior to the classic levels and price fields were hand-built and optional levels, the method of Fibonacci and some other systems never reach. However, for beginners who make their first steps on Forex strategy Transient Zones is a good option, since it introduces levels, price regions and extrema.
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| Category: Forex | Added by: (05.11.2017)
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| Views: 1382
| Rating: 0.0/0 |
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