These small classic doji bases make excellent high probability levels where price could rebound.
A trader can use the level of a supply zone as a trade exit to sell and take profit (or trade entry to sell and short).
In this example, shares/contracts/currency could have been sold at the level of the doji 3 times.
** 4 hour time frame **
#BTC falling and relatively cheap.
Set a stop loss just below the lowest wick in the demand zone or per your trade plan. The risk in this setup is only 1.2% -- minimal fee to catch a possible dip.
Setting up a limit buy to buy low on this long-term 4 hour chart.
While the hype is in #altcoins with high momentum and volume, it's sometimes hard to instead focus on those things that are undervalued or forgotten -- contrarian.
Small candles -- similar to a doji -- before large price movements indicate and area of contention between buyers and sellers, where a large amount of demand ate up all the sellers.
Buy at demand levels, buy before everyone else buys. Have a limit buy in early, make the market of buying low and selling high.
14230 was a large demand zone I've had a limit buy on for awhile. Check that out on a higher time frame.
This chart is a 15 min smaller time frame. The limit buy caught the descending wick right above the low of 14k. If you zoom in to 5-3-1 min time frames, price was at that level for less than 2 candles. :))
Bitcoin's falling, so time to place another limit buy.
Found this demand zone on the daily chart, base consists of one doji-like candle. Placing limit buy on the top part of the body.
Stop loss fits in just underneath the wick, perfectly ~2%.
I'll take those kinds of setups all day long!
Found this little base on the 15 minute after this big bear candle. The stop loss fits right underneath the base (plus a few ticks for wiggle room), which comes out to ~5% from my proposed position.
That's a go for me, so I put my limit buy order in, got filled, then placed my stop loss.
A whole bunch of peeps sold right before/at the announcement, and I bet...
I placed this level for a limit buy on the chart a while ago, but forgot about / into other currencies / etc.
EMC2 gapped low right into it after a special announcement.
Great level, but I didn't have any skin in the game for it. :(
This is very similar to my previous post.
The top demand zone is only seen on the 15 minute chart, and the bottom one on the 60 min. The smaller time frame provides more granularity to the candles, so the base (1 or more short doji-like candles) appears from within the bottom of those large candle bodies on the higher time frame. A ripple appears where before...
Single small doji-like candle before an explosive rise in price? One of the classic examples of a demand zone.
I'm going for >20% profit, so once price gets to ~10% and there is a clear uptrend, I move my stop loss up higher than my current position. Now the stop loss is protecting 100% of my principle and a portion of profit.
The placement of the stop loss is...