DeGRAM

Bearish Cycle in the Market

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OANDA:EURUSD   Euro / U.S. Dollar
Bearish Cycle in the Market
1) "market maker spread" is the maximum and minimum of the initial channel. This is usually 25-50 pips high.

2) "Stop Hunt" usually consists of three movements that can occur in a short time.
Three impulses will be marked on the "live" candle.
The end of the stop hunt results in the extreme value (LOD) of the cycle and gives the first signal of where the reversal will occur.

3) "Zone Shift" is a movement intended both for accumulation and for keeping the trading volume concluded at the maximum of the price movement.
According to my observations, I can say that after the "Zone Shift" consolidation is formed, volume continues to accumulate. In these places, you can just look for an entry point.

4) A large impulse move during the initial channel may still be worked by resetting the initial channel hi / lo AFTER the move occurs and then looking for stop runs from the reset channel.

5) Correct entry in the second stage with “peak formation” will use the “zone shift” to take profit.

6) Use the bigger picture (1 hr & 4 hr time frame) to identify levels for possible entries. At the lowest level (15min), take trades ONLY from the LOD / HOD.
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Additionally:
Duration of consolidation after stopping hunting before HOD / LOD
Difficult to define. We do not know how long a major player will take to gain a position and we do not know how much volume he needs.
A) The previously accumulated volume can be quite large, so no consolidation is required and a V-shaped bottom occurs.
B) Additional time may be required to accumulate volume.
C) Additional time may be required followed by the expected search for a second stop (wide W-pattern)

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