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Paz

The document discusses that a consolidation pattern (CP) is the same as a price action zone (PAZ). It explains that to identify a PAZ, one should look at the engulfing candle and failed to return (FTR) of a CP zone. Each new PAZ is formed by the FTR after the break of the previous PAZ.

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2K views1 page

Paz

The document discusses that a consolidation pattern (CP) is the same as a price action zone (PAZ). It explains that to identify a PAZ, one should look at the engulfing candle and failed to return (FTR) of a CP zone. Each new PAZ is formed by the FTR after the break of the previous PAZ.

Uploaded by

vlad_adrian_7
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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If:Allow me to give you one big clue.

In fact, for many of you, it may be the last thing you need to know for that
massive EUREKA moment to occur

Once it does, you'll be advancing to the Associate Traders rung, where I'll fine
tune it for you, until you're ready to go to the Master Traders Room, where I'll lay
it all out on a plate

So here goes

A CP is a PAZ
If you're having trouble spotting your PAZ, look to a CP zone,, look to its engulf
and FTR. That'll be a reference for all your further PAZs

Raven, you'll need to look further left for PAZ engulf and FTR in order to draw
your PAZ1 properly

Each PAZ remember, is formed by the FTR after the break of the last PAZ. (that's
why, when you look across a zoomed out chart, you can see Zones lining up in
bands all across the chart, be they flags, poles or empty space. The don't line up
to the pip though because it's the break of one and its FTR that creates the next,
offsetting it one way or the other each time :) )
http://www.readthemarket.com/index.php/forum/classroom-and-tradingroom/1517-the-classroom?start=500

dr.swingAnd in my own words :) , "The level at which price leaves a zone and fails
to get back into the zone is the FTR (FL). So we now have a PAZ above the FTR
and another PAZ below the FTR, and we can operate within these individual
zones".

EDIT: oh, and the FTR (FL) level is the DP between the PAZs.
http://www.readthemarket.com/index.php/forum/classroom-and-tradingroom/1517-the-classroom?start=475

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