Cheers!
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ReadtheMarket - Supply and Demand with Price Action
- #6,487
- Jul 7, 2020 8:30pm Jul 7, 2020 8:30pm
{quote} hey rocky thanks for your replay . I think this could be one of the IT scenarios for collect more buy orders to fill their big sell orders.(This is my opinion and it could be completely wrong) {image}
Just saw your reply. In this case, even though most orders are likely consumed in that area as of now, more could be placed at a later date. We look for the engulf because that is a clear message that price wants to go lower (this is what is called Price Action or PA). In this case, price might bounce of the zone several times before engulfing it, making your QM invalid or less likely to work (i.e the message is not as clear).
With regards to the IT trick, it very well may be one. Something that can be telling is what the HH is reacting too. Do have you a screenshot of that we could take a look at?
Remember: We are looking for tricks played where they have been played in the past. You also might want to draw the Kink on the QM line you have, to see where price is likely to bounce and check if there are orders there in fact (you can see this in a M30 down to M1 chart). Another thing I try to do is assume that the trick is being played on me at all times, so if I feel that price should turn at a point, I always try to look at where other trick zones are and see if mine is at a better price (if that makes sense)
Again, I still trade demo and I am working on my plan as well. All I am doing here is talking from a little experience and lots of RTM theory.
please correct me if i'm wrong
