When the ZUP pattern is properly identified, the trader can enter a high probability trade. The main advantage of this trade is the ability to set tight stop loss orders in case of pattern failure. As with any trading system, this pattern is best used in conjunction with other reinforcing indicators. Support, resistance, and pivot points would be an example of this.
This style of trading is sometimes referred to as Harmonic Trading. No trading systems work all of the time. A 70% win rate with a controlled risk makes this pattern based system an excellent trading system for many types of traders.This is a universal trading indicator and can be applied to any market. Stocks, Forex and futures are examples of these markets. This indicator is published and available to the MT-4 Forex trading platform.
This technical trading system is used by banks, trading syndicates, hedge funds, and nearly every trader at a professional level. Anyone with modest intelligence and a little discipline can trade this system. This indicator can be applied to various markets such as stocks and currencies.
I am not a software engineer. The signal software was developed by others. I am an experienced trader. There are no secret “holy grail” trading methods. Think about it. The more traders that use a system, the better it works! Of course the Central Banks will set a currency price at will. We can’t second guess the Central Banks but we do know when they trade and we can choose not to trade at that time. The Forex markets are open 24/5 so we can select our trading times.
No trading method is easy and I’m not saying this is easy. The problem with most novice traders is that they are lazy! That’s why they get into this business,looking for easy money. There is no easy money but there are profits if you are willing to do the simple tasks that are required in a well managed trading system. Well are you willing?
You can read all about Leonardo Fibonacci on the internet. The bottom line is that he developed a sequence of numbers found throughout nature. These ratios have been applied successfully to trading charts. Every charting program out there provides Fibonacci tools.The markets tend to obey these ratios for reasons unknown. I don’t much care about why it works. I do care about if it works. Traders must realize, if you find something that is working, then go with it. You do not need to analyze the WHY.
The “powers that be” are able and willing to manipulate the markets at will. They have very deep pockets and can bury us at will. If you can’t beat them join them. Most of the trading in all markets is program trading. Computers are programmed to make the trades. What does a computer need? RULES! The rules they follow are whatever they are instructed to follow. That is why your favorite indicator will work fine one day and not the next. Big money rules!
But there are certain rules that are universally followed (most of the time). These rules are SUPPORT, RESISTANCE, and FIBONACCI. Trend lines also get a piece of the act. When you combine the effect of these universal indicators to price action you end up with a high probability trading system. Trading is all about probabilities. There is no such thing as a 100% accurate system.
The ZUP indicator provides us with a valuable tool to build a successful trading system. This indicator may be a major part of the equation but the successful trader must also consider money management and many other important factors.