Hi Alfonso,
This is an excellent expansion on Sam S's material. I've spent a couple of days on the first post and videos and am unsure of my understanding of two points. I wonder if you would point me at any posts that expand on them.
Under 9 we have: We want that the potential imbalance consolidays away from the origin (base) at least with a full OCHL candle (Open, Close, High, Low) and provide us with a 2:1 imbalance (twice the width of the base)
And below you write: If the imbalance is great and price returns to the area shortly after, it's not a good sign either, price needs to consolidate away from the level and not return to it in the next couple of candles. Why is it not that important? Because we want to be riding that zone as soon as possible, those are accumulation/distribution periods, big imbalances can happen but not always.
I am guessing that the 9 section means that for a new zone to be usable it needs to have at least 1 bar width between its bottom and the top of the base zone. I'm not clear what the 2:1 imbalance means in this context (2:1 on what ratio).
I'm guessing the second that you might be suggesting that price should move away from a dz (say, for a long) and consolidate above it for a while before retesting it (for your long entry) rather than moving up and retesting almost immediately. If that's what's intended I don't understand the next sentence (about riding the zone).
Thanks.
This is an excellent expansion on Sam S's material. I've spent a couple of days on the first post and videos and am unsure of my understanding of two points. I wonder if you would point me at any posts that expand on them.
Under 9 we have: We want that the potential imbalance consolidays away from the origin (base) at least with a full OCHL candle (Open, Close, High, Low) and provide us with a 2:1 imbalance (twice the width of the base)
And below you write: If the imbalance is great and price returns to the area shortly after, it's not a good sign either, price needs to consolidate away from the level and not return to it in the next couple of candles. Why is it not that important? Because we want to be riding that zone as soon as possible, those are accumulation/distribution periods, big imbalances can happen but not always.
I am guessing that the 9 section means that for a new zone to be usable it needs to have at least 1 bar width between its bottom and the top of the base zone. I'm not clear what the 2:1 imbalance means in this context (2:1 on what ratio).
I'm guessing the second that you might be suggesting that price should move away from a dz (say, for a long) and consolidate above it for a while before retesting it (for your long entry) rather than moving up and retesting almost immediately. If that's what's intended I don't understand the next sentence (about riding the zone).
Thanks.