Fresh supply zone ahead, possible retracement, 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
Hello, I´m new to the Trading Business .. and not quite sure if I understand you right .. could you please tell me what you suggest for Entry, S/L & T/P at this chart? Thank you very much in advance. Best regards
tradewonk
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@Curse1982, Okay, i will create a new idea with sl tp if the price comes near the yellow ( supply zone )
Curse1982
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@tradewonk, Okay great, thank you. Just dont want to make mistakes and understand everything right. Thanks for your ideas.