Corrections Between ZOS or ZOW- (Normal Human Behavioral)

General Discussion
#1

I wanted to open a new Topic so that everyone can get a better understanding per this question that was asked by a member. His question first appeared under AMC video 8-12-21.

QUESTION:
Jim, when you say there are only ZOSs from now on until 8/23, does this mean the price moves sideways between the ZOSs? What’s the difference between price pull-back and ZOW? Thanks.

ANSWER:
From what I’ve been able to understand over the years, markets TEND to move counter-trend in between my specific ZOS or ZOW. The exception is very powerful moves (up or down) when price tends to only move sideways to consolidate in between my time stamps. In VERY rare instances, we will even see further progress in the direction of the main trend in between my specific ZOS or ZOW timestamps. If you’re familiar with Elliott Wave, these periods are referred to as “running corrections.”

Generally speaking though, if a market is uptrending, I call pullbacks “sag zones” and if downtrending I call them “lift zones.” If AMC trades semi-normally, I would expect to see price sagging (pullbacks) in between specific ZOS time stamps during August. If AMC is seeing a powerful advance during August, I would expect to see sideways vibration in between the moves higher into the ZOS timestamps. If melting-up, I would expect to see running corrections (a less steep slope to the uptrend) during period that would normally be associated with sagging.

I hope that helps.

#2

Thanks for more detailed clarification on this Jim! Very informative and helped my understanding of price action improve.

1 Like
#3

Ok…now it has clicked…THANKS Jim and BAM FAM! You guys are making the playing field a bit more even. I don’t have an enormous amount of money, but want to be prepared for the worst and best case scenarios. Thank you for telling it like it is. As a client I prefer the facts, as we going up or down today…however I have gained so much technical skills I had no clue about when I came into the Market in March. I love this community and the people who are doing work! :+1::popcorn::lemon::yum:

#4

The strength of a ZOS or ZOW depends on the timeframe we are looking at it right? As in the ZOS from an HR time frame is stronger than a 5m one, right?

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