Retest back into a fresh supply zone , possible retracement, a short opportunity.
Stuff to remember:
— First look for significant move, then follow it to its origins where you might find a suitable level to evaluate further
— Make sure the initial move is significant on the same timeframe as the one you use for viewing your candidate level most clearly
— Check the distance that price traveled before the trend ended, longer distances mean larger initial imbalances and improved probabilities in the future
— The strong initial move can contain a few small retracements but not so many that make this move slow and weak
— Avoid opposing levels on the same and immediately higher timeframes, prefer to have a clear road ahead for your trade to run
— Make sure your level is placed correctly (low for Demand, high for Supply) in relation to the big picture's important tops and bottoms
— Trading the first return of price to a valid "fresh" level carries the highest probabilities due to the larger imbalance
— A valid level is considered "fresh" if price has not returned to it since its creation. It has nothing to do with how old the level is
Trade closed: target reached
⋅
Comments
rgrg
⋅
Target/stoploss?
nakg3
⋅
@rgrg, His stoploss is usually a few pips above the zone. Target no idea.
behavioral_e
⋅
nice.
RyanCox
⋅
Hi, @tradewonk is this how you worked out this area? So would this area still be a fresh area? This was one part I still try to get my head around.