We hear many-times word ZLR @ NM chat .. So I googled it & found below details...
![Smile :)](./images/smilies/icon_e_smile.gif)
ZLR is a pattern of Woodies' CCI.
Zero-line Reject (ZLR) Long :
* The Trend is established up. (See A) (Note the Blue time- bars after the yellow time-bar).
* CCI then moves downwards towards the ZL. (See B) * The CCI then turns back up in agreement with the established trend. (See C)
* In addition, the CZI is blue (cyan) and the SI is green confirming a ZLR.
* Final nuance/rule: the CCI points for a valid setup. You want 15 to 20 difference between previous and CCI entry bar. In the example below, the current CCI bar is +35 and previous CCI was -8, this make a 43 point difference in CCI points.
* If all these conditions are met a Buy is warranted.
Zero-line Reject (ZLR) Short :
* CCI must be in established downtrend with the CCI tracking below the-100 line (See A)
* The CCI line must have change in direction against the establish trend traveling above the -100 line (See B)
* This reverse must occur with the CZI brown for at least three bars * The SI must be yellow or green
* The CCI line must then reverse back (hook down) in the direction of the establish trend CCI breaking the uptrend line. (See C)
* The CCI must be 15 to 20 CCI points greater than previous CCI bar. See the example on the right. We have -47 down to –56 only 9 CCI Points, then the CCI moves on down to -98 giving us a -42 point difference, so this would be a Valid ZLR.
In 5 minute chart for confirmation, where everything lines up. CCI settings are 34/14
I have no more idea regarding this indicator, for further details google please..
Regards.
Trupti