Intra-Day Update: Fine-tuning Mr. Zero

UPDATE 1:30pm EST: As you guys can tell we are still fine-tuning the zero. I just changed the smoothing of the 30min chart to 2 after Berk told me that this setting worked very well for him. I tested it for a bit and think that he’s spot on. Let’s keep it that way for a while – hope it works for you rats.

Regarding the 15min Zero: Seriously, I was actually against posting this one as I have the feeling that, although everyone wants it, it might not help your trading, IYKWIM. Do me a favor – just use the 15min as a visualization of the short term trend. But do not trade it as it can whip you – just like the market can whip you. Remember folks – the Zero is not a crystal ball. It only gives you early entries/exits sometimes because the underlying market forces shift and the Zero shows us that before prices start reflecting it fully. I hope that makes more sense for you guys.

We should all focus on trading the long term trend with the zero. If you are a swing trader or day trader – please do not use it. If you do, it may work for you, but I will not support you in any way if you run into situations where you being faked out.

UPDATE 2:34pm EST: Someone complained that the zero was ‘too jittery’. Well, it’s not our fault if you cannot follow simple instructions. Case in point:

This image is part of the new tutorial I’m working on. It shows the 1hr Zero in action over the last 15 days. Red lines depict short entries, green long entries, and blue possible exits if you are light on your feet. Now, each of those trades would have been successful, assuming you would have waited for a confirmed entry.

Again, the market is extremly whippy right now – but even under these conditions I think the Zero is holding up quite nicely. After all, it started pointing up early in the morning and where are we now?

I am actually thinking of automating the Zero for my own purposes. This way I take emotions out of the equation. Which are usually why trades are unsuccessful – the tutorial is quite specific on waiting out the signals, but it seems many of you guys are on hare triggers.

UPDATE 3:26pm EST: Check this out:

How about that? Same phrase I saw last time we rallied on bad news. Remember, true wisdom is to call things by their true name. So, let’s replace ‘wave off’ with ‘ignore’ and see how that comes across. Well, we for sure won’t fight the tape though – zero has called it nicely today (irrespective of all the bickering by members show shall remain nameless).

UPDATE Closing Bell: Some of you asked for an EOD Zero chart and as I love to serve my nefarious leech legions here it is:

I even pointed out the entry point – just to rub it in 😉

Somebody mentioned that I talk about the Zero too much. If I do – please accept my apologies for my irrational exuberance. Just having too much fun with it. But I did post a poll on your right – let’s see what the majority thinks. After all, I don’t want to blow up the blog over that.

Have a good weekend!