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Advantage Hot Zones

Hot Zones - tradestation indicator daytraders identify fair value liquidity scalping counter-trend

‘Hot Zones’ are areas where a lot of trading has taken place. Areas where both buyers and sellers are have reached a temporary agreement on the fair value of an instrument. These areas of liquidity act like magnets, frequently drawing price back towards them. So when a market moves away from a Hot Zone, this can provide a great heads up that a trading opportunity may be developing.

The only other things you need to bring to your analysis are a sense of the long term trend, and some nifty counter-trend entries for short term overbought or oversold markets . . .

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Trading Stocks, Options, Futures and Forex involves substantial risk of loss and is not suitable for all investors.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

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