Price comes down into the preliminairy support.
Price pulls back, showing bigger bullish strength (CHoCH in candle structure) -> Slowing price and creating support -> thus creating liquidity
Price bottoms out, creating the selling climax. -> Dumb money starts getting involved in sells. -> Composite man starts buying.
Price rallies back up to the end of the CHoCH (AR / automatic rally)
Price comes down into the ST (secondary test) which comes to about the level of the bottom of the AR, engineering fake liquidity. -> dumb money buys.
Price goes up to around the AR (sign of strength in phase B, ideally stays below the PS) -> taking out sellers / engineering topside liquidity.
Price now liquidates the selling climax or ST (overall structure remains bearish, creating an ST (B))
Now price usually starts to range you don’t want price to take out the second high after AR.
Price now liquidates all lows with liquidation of the SC is optional but preferrable.
Price rallies up (SOW / sign of strength) that takes out seller’s liquidity that should break above AR + SS (B) + now breaks structure.
Price might come back to left behind demand zones / mentFX blocks
(COURTSEY TO @MENTFX FOR THE IDEA AND KNOWLEDGE)
Price pulls back, showing bigger bullish strength (CHoCH in candle structure) -> Slowing price and creating support -> thus creating liquidity
Price bottoms out, creating the selling climax. -> Dumb money starts getting involved in sells. -> Composite man starts buying.
Price rallies back up to the end of the CHoCH (AR / automatic rally)
Price comes down into the ST (secondary test) which comes to about the level of the bottom of the AR, engineering fake liquidity. -> dumb money buys.
Price goes up to around the AR (sign of strength in phase B, ideally stays below the PS) -> taking out sellers / engineering topside liquidity.
Price now liquidates the selling climax or ST (overall structure remains bearish, creating an ST (B))
Now price usually starts to range you don’t want price to take out the second high after AR.
Price now liquidates all lows with liquidation of the SC is optional but preferrable.
Price rallies up (SOW / sign of strength) that takes out seller’s liquidity that should break above AR + SS (B) + now breaks structure.
Price might come back to left behind demand zones / mentFX blocks
(COURTSEY TO @MENTFX FOR THE IDEA AND KNOWLEDGE)