Attached Image (click to enlarge)
ReadtheMarket - Supply and Demand with Price Action
{quote} According to me, this could be one explanation but i am not too much sure and I am new to this RTM concept, can you pls guide me
Always start from the highest timeframe when you analyze. So the direction where you are looking to trade will not go wrong. Next look for the areas where the clean orders are. Those places are the edges of CP, FLs, Left shoulder kinks.. etc. Make sure those are clean places. What do i mean by "clean"? Once price leaves a key level, for example a FL, then price should not come back and touch that zone immediately. Thats a key point. In your image the price is reacting to such clean level. It is also an edge of a CP which we call pre-compression(PCP). So bounce can happen at that place and it has already happened. Now price still hasn't hit its target which I marked as target1, which is a big flag limit. Once price hit its target, we no longer can guarantee price is going to go lower further. It is a decision point. market makers will decide again whether the price should go up or down.
Daily
H4
m15
I would like to have an opinion on my analysis, to know if I'm going in the right direction {image}
The top box, I marked the LSK (Left shoulder kink) also. Thats way safer as it is the highest kink.
Note: BTW look to the left of that top box. It is aligning with another key level, which gives more importance to that kink. It is really good place to bounce price.
