Invisible Zone Volume 3 Lecture

Key Topics Covered

• Identifying and using Trend Points of Interest (POIs) with realistic targets
• Fractality and its misconceptions
• Backtesting method suggestions
• Importance of philosophy in trading
• Overview of Invisible Zone Mark I and Mark II

Invisible Zone Mark I and Mark II

• Mark I: Not a replacement for the standard Invisible Zone, but an addition. It includes subcategories like SI hybrid, pattern I, etc.
• Mark II: Combines elements of SI and Pattern I, focusing on lows that run significant external highs.

Pattern I

• Involves invisible zones with a non-successful anchor (failure anchor).
• Example: A low that doesn't run the high it came from but creates a pattern with another failure low.

SI (Standard Invisible Zone)

• Shrinks as it makes bounces.
• Anchor moves with each bounce if aligning with higher time frame narrative.

Identifying External and Internal Trends

• Each timeframe has two trends: Internal and External.
• External Trend: e.g., 2-hour low that runs a high.
• Internal Trend: Looks like a trend shifting direction within the external trend.

Invisible Zone Mark II

• Focuses on lows running significant external highs not just immediate highs.
• Identifying lows that run the most external highs helps in aligning with the trend direction.

Fractality and Misconceptions

• Price does not move the same on all time frames.
• Lower time frames show more irrational movement due to smaller participants.
• Higher time frames showcase structured and rational market movements.

Backtesting Method Suggestions

• Beginners: Focus on watching how price moves and identifying invisible zones.
• Intermediate: Mark out valid highs/lows, start using invisible zones.
• Advanced: Apply Mark I and Mark II protocols, focus on execution and confidence-building.

Importance of Philosophy in Trading

• Emphasizes that market movements are influenced by human emotions like fear and greed.
• Rational fear and greed guide successful trades, while irrational behaviors lead to losses.

Practical Examples and Applications

• Examples illustrate identifying trends, invisible zones, and applying Mark II protocol.
• Targeting external highs and managing trades using invisible zones.

Conclusion

• Invisible Zone strategy is about identifying points where fear and greed collide.
• Aims to think like an investor, buying where there's greed and selling where there's fear.
• Encourages a community approach to learning and trading.

Note

• For further understanding, engage with the community, participate in discussions, and watch related videos to deepen comprehension.