(binned per thread starter’s request) Winston's Supply and Deman

Sweet!

Something to think about.

Both events in red rectangles signify violent supply. Supply/Demand traders tend to view these as opportunities to trade a retracement at some point within these events. Yet price often moves right back through these gaps.

Markets don't really like to leave gaps as is for the most part so it is not unreasonable to consider trades back into these gaps.

Not a trade call. Just something interesting. Will it fill the gap or not?

Hmmmmm

Let's see what happens when price gets there.

For trend context.

Thanks for the explanation HiddenGap, can we consider the chart below valid?

Switched to 1H, good confirmation of demand zone on GJ

Good pivot on EJ, 1H

Similar to EU

This structure I call a chimney because of the flat top. It would be an upside down "V" if the top was peaked.

The left side is what I refer to as "all gap". This is when there are two or more bars/candles that open near their low/high and close near their high/low.

Markets in general do not like to leave such gaps as is so quite often you'll see price come back through these series of bars/candles as is the case here. Vs, upside-down Vs, chimneys, etc are frequent occurrences and essentially represent a multibar/candle tail or pinbar.

What many believe is that a pinbar or tail is a type of price action that infers imminent reversal. I disagree with this assumption.

IMO what is important about a pinbar/tail is what happens after it forms. Does price take it out to the upside or to the downside?

If price takes out a bull tail to the downside then this represents a significant reversal of bullish effort.

If price takes out a bear tail to the downside then this represnts a significant reversal of bearish effort.

On the left is bullish tail. Note it's base. In this case price tests the base and moves up thus the base acts as demand. When price comes back one might consider buying

On the right is a bullish tail. Note is's base. In this case price takes out the tail to the downside and thus the tail itself becomes supply because that is where the bull effort was reversed. Now one can use the tail itself as a potential sell.

Having said the above one must note that each of the above scenarios can actually whipsaw again and leave you wondering "what happened"

Tails or pinbars should really not be used as signals to enter by themselves. One should wait and see what price does after the pinbar.

Good example of a structure-level (rather than bar-level) tail that was bearish but then reversed to the upside. When price returned it acted as demand.

Something to think about.

Pivots at corrective legs.

Next Pivot in the trend related to previous pivot in this particular series.