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. -------------------------
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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Traders aren't being hunted by the big institutions. Those moves are caused by the big institutions waiting for the support and resistance traders to buy the highs and sells the lows like they usually do, because they know that when the market retraces against these people's positions many of them close their positions out of fear because they've over leveraged themselves. This then triggers the stop losses of the support and resistance and traders who were actuallyusing them (another story altogether) and the banks capitalise on this mass exodus from the market as well and this melting pot of factors causes a big run off to either the up or the downside. ✌🏻
IamThattrader
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none of what any of you guys have said is true. Its amazing what you lot been taught by 3rd party teachers.
AlfredJ01
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@Mr-Gold, enlighten us please Tell me and I forget. Teach me and I remember. Involve me and I learn. ~Benjamin Franklin