Price is in demand with supply just above - price needs to start breaking supply to move higher. The 4hr bars are still moving down, I would want to see the 4hr or lower timeframes start to turn in favor of a long and break supply above.
GJ basically is a continuation trade down. The levels above are being broken turning the buy orders into sell orders. However if the sellers fall here and we see price start closing above our sell orders in red then I would want to take a long. If price breaks the low again we continue down
We have this idea that price is in demand. Demand needs to hold to send price higher. A break below demand would see a continuation of price falling. Risk is 17 pips for the two demands and where price stands - reward is 54 pips for top level of supply
In the past three charts I talked about relationships between bars, then groups of bars and finally base of legs up and down. To build a trade set up we need all three concepts. We do not long when price is breaking supply lines, we wait for a retrace and identify areas of interest. Im going to contradict myself here because if we only take trades in the direction...
In the first two charts I talked about the relationship between bars then the relationship of a group of bars. This chart looks at how we play the base of the leg up or down and what occurs when a base of the leg is crossed under or over.
Expanding the idea of how price action develops on individual bars to a group of bars starts to paint a picture of what trend is doing. When price is breaking below buy orders we had to have more sell orders to do this. So we can say where we had buy orders is now sell orders. Look left is a common phrase in supply and demand, it refers to an area of orders where...
The base at the top failed to hold price up turning it to supply. The base at the bottom remains intact and as long as it remains intact it is demand and should send price higher if we lose demand then price will decline further