First demand worked well. Will it reach the next one. Time will tell, could be a good long 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
Comments
livingdaylight
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But, when I look on the Monthly, Price is ranging & shorting doesn't look good to me right now.
What do you think?
tradewonk
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@livingdaylight, It has moved sideways the last 13 months, so for me looks okay.
@Glendooie, Ok... are you already in or planning on entering at said Daily Supply zone.. context to better understand - thanks
tradewonk
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@livingdaylight, I only take trade at fresh supply or demand zones.
Glendoonie
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@livingdaylight, I am in already and selling. Currently negating an asymmetrical double top at resistance level 0.749. I cannot 'see' the buy opportunity yet. I am not a daily supply zone trader, but the methodology has merit so I check out Tradewonk from time to time.
livingdaylight
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On Daily we have supply which looks good to reload shorts
Dji127
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Thanks for you analysis, I will be keeping a eye on the pair. I would like to learn more about supply and demand trading/analysis, is there anything you could recommend to get started?
What do you think?