We took profit on the 2 lot .. a little over 50 pips
Here's what I was looking at for this level..Price had move up out a small base in a Drop-Base Rise pattern..PA then went sideways briefly .. Then a 21 pip move straight up..So lets look at this for a moment.. See the preceding drop marked SM's active.. If you look a little farther left you see the same thing in a Rise as the GAP was closed..Look at these moves RELATIVE to the surrounding PA..This is the same activity we look for in the higher TF... Because we have such a strong trend upwards .. longs are the order of the day.
I determined a Demand level along with the Demand level below.. Then it was time to wait for price to return as watch how PA moved into the level. We see good volume .. Relative to the TF we are trading.... Price eventually fell apart at the level .. No more Supply...Volume low..Wicks into the Demand level.. Price cant get below ....Narrow spread candles .. Lack of any pressure to the down side....The spread at the time.. a bit wide.
I tend to use FIB to find levels.. Makes it easier for me.. What I am looking for is confluence ( FIB to S/D Levels ) .. This is not to say this is the right or wrong way to do this .. but it works for me.... I, like others, had a difficult time with finding good levels.. Again.. this is not presented to be a right or wrong.. just what I do.
As you can see we are definitely in a strong up move as previously mentioned. looking left nothing really to get in the way of price moving aggressively into the Supply Levels... If you condense your chart you will see that this pair is moving to the extreme of it's range.. Is it a perfect range.. NO.. but close enough..
Great places to trade S/D levels when they set up.. We get a confluence of range extreme and S/D levels... Now we sit back as watch to see what happens when price reaches the level.
Good trading to all
TSD