A down trending value area
Sellers resistance at top value area edge
Daily stochastic at high extreme
5/20ma cross trigger
stop loss previous high
target value area control line or possible lower edge value area
exit at re cross of 5/20ma
find the big value area on the 4hr or daily chart.
find the small value areas within the big value area on the 1hr or 15min chart.
when price moves to the outer edges of the big value area
wait for a break of the small value area there.
look for a rejection of that area for the entry.
stop loss the small value control ling.
target the big value control line.
A picture tells a thousand words.
Let's learn to read the picture.
Price is seeking value and creates a pattern.
Small value areas form within a bigger value area.
Trading opportunities arise at the outer edges of the bigger value areas
target at the control line.
The trend will change if the price starts making HH, HL, LL, LH.
It will then start to form a new...
Possible long and short trades that can be taken when trading from a value area.
the 1hr 20ma or 100ma cross over can be used as a trigger.
stop loss previous swing high or low.
target at the control line
Trades can be taken from the top edge to the control line - short
and from the bottom edge to the control line - long
entry triggers can be higher highs, HL, LH, LH - double tops/ bottoms - head and shoulders - wicks, or small value areas.
buyer strength at the bottom of the value area.
long trade back to the target at the control line.
It does have the potential to hit the value high again, but you never know.
a safer trade is to exit at the control line.
This is the footprint of the bigger money that move the market. Price is always seeking value between buyers and sellers.
The central control line in the value area is where the most trading takes place, it's like a magnet to price.
Price moves from one value area to another.
Trade the edge of the value area back to the control line.
