ZZ LRC drawing guide | Forex Factory

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ZZ LRC drawing guide

  • #1
  • First Post: Edited 3:51am Jan 14, 2007 2:36am | Edited 3:51am
Hi Team,

As you all know, Channel drawing is a tricky business especially for the Padawans. It actually need lots of practice and wont happen over night. Like everything else, you will make a lot of mistakes.

After a long discussion with a friend of mine, I concluded that ZZ can help you to draw your channel more accuratelly. However please bewarn that the settings that I recommended (15mins chart, extDepth 100) may not be the best settings, but its a start.

ZIGZAG

The custom indicator provided by MT4 can be located easily. ZZ drew dip and bounce (at lower settings) and High and low (at higher settings). Prices usually reverses when the line is drawn, but its not a guarantee as many times it also doesnt.

But, thats not why we use ZZ here. Since it drew a straight trendline based on High and Low, uncounciously, it helps us to determined the start and end of a channel.

The ZZ line will redraw itself, so will be your channel. This happens when a trend is changing. This is actually advantages to us as it helps us to determined our next entry and exit points.

Channel Drawing with ZZ

Start your channel from the last bend of the ZZ line until to the end of the line. You can pull the LRC starting from this point minus 1 bar. When you include the last bar, your channel will move and it will drive you crazy.

When the ZZ line change direction, draw another channel and learn the new dance on that channel. The Length of the channel will be determined by the length of the last ZZ line.

Feedback

I need your positive feedback on this especially on the settings.

OR
Attached Image
Change Your Thinking. Change Your Life - JD
  • #2
  • Jan 14, 2007 5:23am Jan 14, 2007 5:23am
Hi Orange !

First of all thank you very much for the awakening of the ZZ Indicator
which slept til now quite well in the MT4 indicator tomb

As you still mentioned I think we should not overestimate the importance
of this indicator.

It's just a tool in jedis world, a nice very bright laser torch which
is showing the direction of the crowd

I've attached the actual 1h channel of the GBP with my manual
drawn channel.

I've drawn the trendlines from right to left as told by Tom Demark.

First I drew the upper trendline and then duplicated it to the downside.

We had a trendline break on CCI to the downside and I'm short with
2 orders (each 2 lots).

Orange I thing the ZZindicator gives tuys and gals much more
confidence where to draw the channel.

Thanks again master and good pippin
Attached Image
  • #3
  • Jan 14, 2007 5:44am Jan 14, 2007 5:44am
Orange thanks for guiding us again to the right way , can u pls post the right settings of ZZ for 1h and 15 min chart ?
  • #4
  • Jan 14, 2007 5:48am Jan 14, 2007 5:48am
Hi folks !

As an addition I've attached the same chart as posted before but
in a more bird view.

The red line is the ZZ-Line with settings 88 as Orange mentioned.

Greetings

Bernhard
Attached Image
  • #5
  • Jan 14, 2007 6:21am Jan 14, 2007 6:21am
Master Orange Roshan and fellow Padawans.


I came across this site when Zig Zag was mentioned by Master OR in the SRDC 2 thread. Master OR please let me know if this information is helpful.


http://www.forex-tsd.com/indicators-...indicator.html

Go to post #3

__________________
All 4 1 and 1 4 All
All 4 1 and 1 4 All
  • #6
  • Jan 14, 2007 6:26am Jan 14, 2007 6:26am
Quoting 4rex
Master Orange Roshan and fellow Padawans.


I came across this site when Zig Zag was mentioned by Master OR in the SRDC 2 thread. Master OR please let me know if this information is helpful.


http://www.forex-tsd.com/indicators-...indicator.html

Go to post #3

__________________
All 4 1 and 1 4 All
Yes 4rex. Its good Info. Save me explaining.

Thanks.

OR
Change Your Thinking. Change Your Life - JD
  • #7
  • Jan 14, 2007 6:34am Jan 14, 2007 6:34am
Quoting OrangeRoshan
Hi Team,

As you all know, Channel drawing is a tricky business especially for the Padawans. It actually need lots of practice and wont happen over night. Like everything else, you will make a lot of mistakes.

After a long discussion with a friend of mine, I concluded that ZZ can help you to draw your channel more accuratelly. However please bewarn that the settings that I recommended (15mins chart, extDepth 100) may not be the best settings, but its a start.

ZIGZAG

The custom indicator provided by MT4 can be located easily. ZZ drew dip and bounce (at lower settings) and High and low (at higher settings). Prices usually reverses when the line is drawn, but its not a guarantee as many times it also doesnt.

But, thats not why we use ZZ here. Since it drew a straight trendline based on High and Low, uncounciously, it helps us to determined the start and end of a channel.

The ZZ line will redraw itself, so will be your channel. This happens when a trend is changing. This is actually advantages to us as it helps us to determined our next entry and exit points.

Channel Drawing with ZZ

Start your channel from the last bend of the ZZ line until to the end of the line. You can pull the LRC starting from this point minus 1 bar. When you include the last bar, your channel will move and it will drive you crazy.

When the ZZ line change direction, draw another channel and learn the new dance on that channel. The Length of the channel will be determined by the length of the last ZZ line.

Feedback

I need your positive feedback on this especially on the settings.

OR
thank God & thanks alot OR...my heart start to feel that u r the "pure" one to help people learn how to trade yur method...BIG THANKS....will learn how to do this.

terima kasih OR,
semoga dimurahkan rezeki, diberkati ilmu, dipanjangkan umur & diberi kesihatan yg baik.
  • #8
  • Jan 14, 2007 7:05am Jan 14, 2007 7:05am
Quoting behof
Hi folks !

As an addition I've attached the same chart as posted before but
in a more bird view.

The red line is the ZZ-Line with settings 88 as Orange mentioned.

Greetings

Bernhard
According to OR channel should start from the last bend of ZZ.
Regards
  • #9
  • Edited 7:45am Jan 14, 2007 7:44am | Edited 7:45am
Im using Master OR setting for 1h chart which is 88.

The red line is the zigzag.
The blue line is the LRC.
The green line is the equidistand channel.

We have to wait and see if the candle is dancing in the channel correctly next week.


Btw im still testing the correct setting, and i think i prefer lower setting more. Have to backtest it first though.
Attached Image
  • #10
  • Jan 14, 2007 9:08am Jan 14, 2007 9:08am
I want to make sure I use the correct settings for the 1hr chart.

ExtDepth:88
ExtDeviation:5
ExtBackstep:3

Please kindly confirm.

Thank you very much Master OR for this new lesson.
Steve
  • #11
  • Jan 14, 2007 1:32pm Jan 14, 2007 1:32pm
Just want to let you all know that this indicator does repaint. What OR is using it for should be OK but dont think you can just buy or sell in the direction this is going. I remember a long time ago when i first saw it, that all I had to do was buy or sell on direction change and would be rich. Not so. So for the new people, dont waste your time counting your millions seeing this. It is just a guide.
  • #12
  • Jan 14, 2007 3:22pm Jan 14, 2007 3:22pm
NonlagZigZag v2 from Igorad. You may get it on Forex-tsd here. It's usefull to know where to start new channel. Not to know where it end.. Will draw new highs properly. I use these setting on M15 chart, Length=88 PctFilter 3.0 to get same Zigzag period as OR did. Then start the channel on the zigzag last low point, finish it on it last high point as you can see on OR chart. Also usefull for other trading methods better not to talk of here. Igorad NonlagMAv7 and AdvanceAMAv1 with alerts are also very usefull to me.
Harmonics and Pitchfork using korHarmonics from TradingArsenal
  • #13
  • Jan 15, 2007 10:21am Jan 15, 2007 10:21am
Hi everybody .
I have one question . What happens now with the channel in the daily chart ? We do it like before or we use the new way of doing this ( zig-zag ).
Thanks in advance .
  • #14
  • Jan 15, 2007 1:07pm Jan 15, 2007 1:07pm
http://www.xpworx.com/ZigZag_Channels.htm

I stumbled across this ZZ indicator. It draws trendlines based on the previous lows and highs of the ZZ. Its from codersguru so it has to be good. Havent tried it yet tho.
  • #15
  • Jan 15, 2007 1:47pm Jan 15, 2007 1:47pm
Quoting C.E.O.
http://www.xpworx.com/ZigZag_Channels.htm

I stumbled across this ZZ indicator... from codersguru so it has to be good...
Yes it is a very nice indicator. CG is DaMan! One thing i've found myself doing is picking a time frame, say 1 hour, letting the ZZC draw it's lines (on that TF only) then manually draw trend lines on top of them and go to my other TFs such as 15m as there will be some funny auto-lines drawn at times when the ZZ H/Ls are in interesting places in time/price. Just a suggestion on what i've seen.

For instance, right now if placed on the 1hr chart there is a nice accending channel much like what might be drawn with EC or LRC, very nice. Drop down to the 30m and there is a pennant/flag formation, drop down to the 15m and it is an expanding bull channel.

: ) Thom
  • #16
  • Jan 17, 2007 2:50pm Jan 17, 2007 2:50pm
Hi Orange & everybody at FF,

Since Or's post about the zig zag I have been testing various settings.
I have found that the settings 35, 5, 3 are working best for me.

I am using the same settings on all time frames, ie. weekly, daily hourly, 15min.
At this setting it maybe a little sensitive, and therfore require some descretion. But at present I have the following:

Daily chart Main bullish channel start from L 1.8517 - 11.10.2006, less one candle to yesterdays candle.. ( zig zag last point H 1.9846 - 01.12.2006 )
I also have a bearish mini channel from this last zig zag point to yesterdays candle.

1 hour chart bullish channel start from L 1.8517 - 10.01.2007, less one candle to end of day 16.01.2007... top of zig zag is cuurently at high 1.9726

15 min chart since testing started first mini channel at L 1.9421 - 11.01.2007 17:30 to H 1.9667 - 15.01.2007 11:15.. at this point I waited until end of 15.01.2007 and pulled channel, next low point of zig zag came at L 1.9623 - 16.01.2007 01:15, then we had the news spike which was a breakout of mini channel, next low of zigzag was L1.9590 16.01.2007 16:30.. which has become the start of the curent mini channel to current day high.

The news spike obviously can change the mini channel direction dramatically,
but thats why we have the 1 hour & daily.

The thing I am noticing the most is when all channels on all time frames are pointing in the same direction, I have alot of confidence in the direction of price, ie. as happened today.....many easy pips.

Maybe I have just got lucky at this particular time, but it seems promising..

Hope this helps, thanks to everyone at FF..

All the best mozzie.
  • #17
  • Edited 4:18pm Jan 17, 2007 4:15pm | Edited 4:18pm
Use the ZZ on the 15 minute, set to 100. Draw an LRC at the start of when the ZZ line begins or changes directions. Everytime the ZZ extends, drag the channel to the same candle.

This should help us synchronize our channels and use the most valid channel more often.

Cheers,
Jeff
Attached Image
  • #18
  • Jan 17, 2007 6:57pm Jan 17, 2007 6:57pm
Jeff,
Just wanted to confirm that the setting is 100 and not 88. I thought that we were all to set to 88. Thanks.
JC

Quoting investingjeff
Use the ZZ on the 15 minute, set to 100. Draw an LRC at the start of when the ZZ line begins or changes directions. Everytime the ZZ extends, drag the channel to the same candle.

This should help us synchronize our channels and use the most valid channel more often.

Cheers,
Jeff
  • #19
  • Jan 17, 2007 7:06pm Jan 17, 2007 7:06pm
Quoting Army1
Jeff,
Just wanted to confirm that the setting is 100 and not 88. I thought that we were all to set to 88. Thanks.
JC
100 is confirmed by the master OR. And it works like a charm.
Steve
  • #20
  • Jan 17, 2007 7:26pm Jan 17, 2007 7:26pm
Thanks Steve. 100 it is. See you in Team Speak.


Quoting PipSteve
100 is confirmed by the master OR. And it works like a charm.
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