"Trade the one variable nobody can fix or fake: the price."- Michael Covel
The PZ Day Trading is a very complex indicator that relies on variable length breakouts and congestion zones on donchian peaks or bottoms, but it keeps the nitty-gritty stuff for itself. All you need to know to trade it is the following.
Sometimes you will bump into losing trades, which are almost always caused by sudden spike bars with long wicks against the trade direction. Because volatility decreases as you go up in timeframes, trading H1 and H4 charts will yield the best results.
The indicator studies the quality of its own signals and plots the relative information on the chart. Every trade is analyzed and the overall historic results displayed at the top-left corner of the chart.
The indicator displays the best possible outcome and the worst possible outcome for every trade using two dotted lines and two price labels, and account every single one of them into the statistics you can find at the top-left corner of the chart. You can use those statistics to optimize the indicator parameters by yourself, for any given instrument and timeframe.
Finally, losing trades are not hidden but highlighed and accounted. Every losing trade is highlighted with a red cross. Looking at them regularly might help you to avoid losing patterns in the future.
Take a look at the video, in which I explain how does the indicator work, how to optimize it, how to trade it and how to avoid losing trades.
Most brokers lure novice traders into scalping small timeframes, with the implicit argument that more trading frequency translates into more profits. But nothing can be further from the truth. Most traders don't lose their bankroll to the market, but to the broker, and end up asking themselves what went wrong.
If you pick the wrong timeframe without doing the math, you can lose money regardless of how good you are trading! Make sure to read why most intraday traders fail to select a timeframe wisely, before starting your trading activity.
Keep always and eye at the relationship between theAverage Absolute Excursion (AAE) and the Cost per trade, to avoid trading timeframes in which the mathematical expectation of your trading is negative.
If you are a novice trader, you should seriously consider trading daily charts or H4 charts, in which the transaction costs are reduced to a minimum in relationship with the potential profits. With just a little patience, you can obtain exceptional returns.
When loading the indicator to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks. This is what each parameter does.