There is buying coming in as you can see (a bit more amplified/concentrated on the 1 hour). We dont want to sell into strength. Strength equals buying. Who wants to sell when SM is buying?
Since price is near support (daily are the green horizontals) I want to maximize potential reward while minimizing risk... in order to do so, price needs to move as far away from support as possible to key fib or resistance before looking for a no-demand entry.
Why?
Well when you sell into strength or too close to support the possibility of price moving against you is greater and due to the proximity to support, you may not have any time to react and access the situation.
If you properly enter short on an appropriate no-demand entry you are potentially for away enough to actually see if the situation is changing.. while you are in profit.
For example:
You enter short and immediately price begins to fall. Things are initially going in your favor. The background was a downtrend.
As price begins to near support the volume begins to surge in, stopping the down move. Since you are in profit and you are a patient/ skilled trader, you can partially close the trade or fully close it before price gets pushed to your SL. You can close the trade in profit or at a small loss and just re-start your analysis looking for the next set-up.
Hopefully that makes sense.
Since price is near support (daily are the green horizontals) I want to maximize potential reward while minimizing risk... in order to do so, price needs to move as far away from support as possible to key fib or resistance before looking for a no-demand entry.
Why?
Well when you sell into strength or too close to support the possibility of price moving against you is greater and due to the proximity to support, you may not have any time to react and access the situation.
If you properly enter short on an appropriate no-demand entry you are potentially for away enough to actually see if the situation is changing.. while you are in profit.
For example:
You enter short and immediately price begins to fall. Things are initially going in your favor. The background was a downtrend.
As price begins to near support the volume begins to surge in, stopping the down move. Since you are in profit and you are a patient/ skilled trader, you can partially close the trade or fully close it before price gets pushed to your SL. You can close the trade in profit or at a small loss and just re-start your analysis looking for the next set-up.
Hopefully that makes sense.