Supply zone ahead, possible retracement, short 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
@tradewonk, I think your analysis is really great.
I am wondering about the target price of your strategy. In this case what was your target price?
I am not sure whether it is at the tip of your demonstrated arrow, however, could you please share to me how you determine it?
tradewonk
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@Panjawat, I don't like to share my exactly entry and target price, because it's not a signal service, i just show strong areas that have big chance to retrace. but generally my target is 1:2 / 1:3 of the red supply/demand i draw. Sometimes i set it o break even and let the profit run.
I am wondering about the target price of your strategy. In this case what was your target price?
I am not sure whether it is at the tip of your demonstrated arrow, however, could you please share to me how you determine it?