... later.
The chart is cooperating nicely and allowing me to illustrate:
The DMTL has changed. Its previous position is noted with a black line.
Price went down and formed a fractal and a supply DTML line formed there.
Price then went back upwards to form another up fractal.
Now look at the up fractal. At the peak of the fractal (middle block or block three) there is a wick.
If you were watching, a block later, the DTML conditions are satisfied and the DMTL is re-drawn to its present position.
A short entry below the wick block is good. Two blocks later out fractal is verified. Also an entry if you like, but not as good as the wick entry two blocks earlier.
The arrival of the DTML line on the wick is like a confirmation of an entry.
We are taking short trades because the overall LL LH trend is intact and we keep a stop loss above the last up fractal.
The chart is cooperating nicely and allowing me to illustrate:
The DMTL has changed. Its previous position is noted with a black line.
Price went down and formed a fractal and a supply DTML line formed there.
Price then went back upwards to form another up fractal.
Now look at the up fractal. At the peak of the fractal (middle block or block three) there is a wick.
If you were watching, a block later, the DTML conditions are satisfied and the DMTL is re-drawn to its present position.
A short entry below the wick block is good. Two blocks later out fractal is verified. Also an entry if you like, but not as good as the wick entry two blocks earlier.
The arrival of the DTML line on the wick is like a confirmation of an entry.
We are taking short trades because the overall LL LH trend is intact and we keep a stop loss above the last up fractal.