If the price can reach the demand zone, it would possible be a good long 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
Hi tradewonk. Can ask one question? Why did you choose 1,3185-1,3225 area for demand zone? it is drope base rally zone, isnt it?
tradewonk
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@seyranari45, I did not choose 1,3185 ? the demand zone on this chart is 1.3100 - 1.3061 and it's' rally base rally
Vimalk
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Weekly chart 13400 big ask to clear - wud it be safer probability wise to short from here as if it does go higher it will come back to enable an exit?
apa1620
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Thank you for posting your analysis! Once price enters the Demand zone, do you have a limit order set or do you look for other confirmations prior to entering your trades?
tradewonk
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@apa1620, i set alarm, because i don't like to take a trade if it's trigger on friday or because of a big news
hayatguzel
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hmm it seems a little bit risky because the resistance zone was not tested enough times ( 2 or more )
what do you think ?
tradewonk
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@hayatguzel, I trade supply and demand and not support and resistance and that's opposite. If it's have been tested few times, then the zone are weak and not fresh anymore.Yes the blue lines are support and resistance, but i draw them just to have a better overview to look for supply and demand.
hayatguzel
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sorry i need to learn supply and demand first :) thank you