The Zipper Bars option in Zones is another method for identifying consolidation and is really targeted for Renko periodicities but may well have applications for other periodicities as well. It looks for a series of alternating up/down/up/down/up/down bars. Below is a clear example of a Zipper Bar on a 2t Renko chart.
And here is a rare 10 bar zipper that does give the appearance of a horizontal zipper...
On a periodicity such as 1 minute, it doesn't give the same clean zipper look, but here is a 10-bar Zipper on 1-minute data below. An up/down colored line connecting the closes is added for illustration. Notice the 2nd bar has close higher than 1st, 3rd bar has lower close, 4th bar higher close, 5th bar lower close. It then skips over flat closes and makes sure the next movement up or down is the direction we're looking for, and continues until it reaches a 10 count or higher (for a 10 bar Zipper).
Hey Chad,
What I am trying to figure out with Zones, is the following:
Zone (High - Low) equal the impulsive move of the breakout.
E.G Zone = 4 point range, when the range is broken, does the next leg up >= to the Zone Range?
I was thinking if I can find the mean of the Zones and then compare the mean of the breakout leg then I could do the study?
Zone = 4 point range
Breakout leg >= 4point
Probability = X
The Zipper Bars option in Zones is another method for identifying consolidation and is really targeted for Renko periodicities but may well have applications for other periodicities as well. It looks for a series of alternating up/down/up/down/up/down bars. Below is a clear example of a Zipper Bar on a 2t Renko chart.
And here is a rare 10 bar zipper that does give the appearance of a horizontal zipper...
On a periodicity such as 1 minute, it doesn't give the same clean zipper look, but here is a 10-bar Zipper on 1-minute data below. An up/down colored line connecting the closes is added for illustration. Notice the 2nd bar has close higher than 1st, 3rd bar has lower close, 4th bar higher close, 5th bar lower close. It then skips over flat closes and makes sure the next movement up or down is the direction we're looking for, and continues until it reaches a 10 count or higher (for a 10 bar Zipper).
Is there a way to find the mean of bars in a zipper before breaking?
By "Mean" do you want the midpoint of the range of prices in the zone? Or do you want some sort of average of closing prices of the bars?
There is this option to draw and label Mid Price on the naked extensions.
Hey Chad,
What I am trying to figure out with Zones, is the following:
Zone (High - Low) equal the impulsive move of the breakout.
E.G Zone = 4 point range, when the range is broken, does the next leg up >= to the Zone Range?
I was thinking if I can find the mean of the Zones and then compare the mean of the breakout leg then I could do the study?
Zone = 4 point range
Breakout leg >= 4point
Probability = X
I hope this makes sense.