DislikedHi Alfonso, I'm re-reading the rules from post one, and red this one: I will consider a downtrend has ended IF the timeframe I use as direction has broken at least 2 D1 supply zones, that simple. If 2 supply zones have been violated, then I will consider the downtrend has ended and will start looking for longs. Opposite for an uptrend. That's the very simple rule I am following. * If only 1 supply zone is broken I will not consider the trend has changed, but I will look further up to lean on the previous unbroken supply on my direction timeframe....Ignored
Disliked{quote} The above statement does apply to the WK/D1/H4 combo. The daily is your trend direction. So draw a trend line on daily to assess trend and for even more confirmation do the above instruction. That is how i have interpreted the post. Or it could mean the tf you have your SD curve on (WK) has to break 2 SD levels before trend is re-realised. We will wait for Alfonso to weigh in.Ignored
I've edited that Post #1 statement about the 2 broken zones to consider a change of a trend. We're also now using the trendline, so that statement has changed "a little bit" to fit with the use of the trendlines, it could lead to a little bit of confusion. Hope now it's clearer and makes sense. I will be editing Post #1 a bit from time to time so that I can cover some nuances and questions arised in the thread, which is something normal since I can't explain everything 100% correctly, there will always be better and clearer ways of explaining things.
The statement now looks like this:
We will consider a trend at any given timeframe has ended IF the trendline that connected the last 2 obvious valleys (uptrend) or peaks (downtrend) has been broken.
- If 2 SD zones have been taken out, then we will most likely have the possibiity of drawing a brand new trendline for our new direction, thus looking for trades in this new direction, only if there is enough room to the opposing higher timframe SD area and we are not too high/low in the curve
- The break of a trendline does not necessarily mean that restest of a SD zone near or at the retest of the broken trendline will be valid. We need to make sure that price has arrived or is very close to a higher timeframe area, ELSE we'll have to make for a brand new direction to the opposite side
- Do not trade the break of a trendline just because it's just been broken, we need to assess location in the curve
Hope that's clearer now!
Alfonso
Set and Forget supply and demand trading community