DislikedThe second one, I THINK we have compression into the supply level. Should this make us more likely to hold past the FTA?
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EDIT: I didn't see your post, LJ.
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DislikedThe second one, I THINK we have compression into the supply level. Should this make us more likely to hold past the FTA?
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DislikedWhat you said above is exactly right, but in the example you gave this is not occurring.
We have to remember that CP is just the squeezing of price, often in a converging wedge. The only question we need to be asking ourselves is whether (in this case) all clear demand within the wedge has been fully tested - this implies that is is more likely to have been consumed - paving the way for the quick momentum move through it.
Look at the chart below and you can see the demand zones I've marked in purple - none of these have been tested so this is...Ignored
DislikedWhen prices are spiking south in a rising wedge, it is compression. When prices are dipping slightly towards demand like a bull flag, then it is bullish. The second one on your picture is barely compressed.
EDIT: I didn't see your post, LJ.Ignored
DislikedI beat you to it!
Good to see we said the same thing though lol.
As always thanks for your input.Ignored
DislikedSo what about this? ( I know its a bit stretched )
- A Compression as a RisingWedge, Demand gets consumed
- FB of a clear swing high ( trap the BO traders + Short SL-es hit => Liquidity for sellers)
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DislikedAlso, is there a difference between compression and consumption (I don't really see any, in my eyes it's the same thing/concept, maybe I am missing something)?
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DislikedHere is an example of a trade I took Friday on EU which is a good example of compression (made 1.95R on this) - don't worry about the M1 PA comments - this is just from my PF - the CP is what I'm trying to get across - no clear untested supply within that channel with price hitting clear H1 demand.Ignored
DislikedCompression is the squeezing of price (relative to preceding price movements) - this often occurs in a converging wedge or a channel. Compression MUST have supply / demand consumption within the wedge/channel for it to be valid.
Supply / demand consumption can exist without price being squeezed within a wedge or channel.Ignored
DislikedAn example of consumption where price was pressuring against demand till it formed a new supply right above the demand and price sliced through the consumed zone.Ignored
DislikedHey. What i see is a Demand Area which I wouldn't have taken even on the FTB because of the premature bounce, which gives a close FTA and a low RR opportunity , let alone a 2nd time back after it consumed some demand on the FTB.
I don't really get what you mean by this setup/idea. This doesn't resemble to what we discussed in previous posts , but maybe i am missing something.
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DislikedOne more and that's it (at least for today ) , I promise.
From what i understand, we use the edge of the SD zone (Decision Point) for our entries/pendings .
Is the Source of the SD zone the place of our SL, or a place to watch carefully to see if it is breached and get out for a smaller loss (manual close for a % of initial stop)? Or it depends on the traders style?
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Edit: I got another DP and Source example , to see if i am getting this right
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DislikedHey. What i see is a Demand Area which I wouldn't have taken even on the FTB because of the premature bounce, which gives a close FTA and a low RR opportunity , let alone a 2nd time back after it consumed some demand on the FTB.
I don't really get what you mean by this setup/idea. This doesn't resemble to what we discussed in previous posts , but maybe i am missing something.
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DislikedCool! Thank you VERY much for your explanation Mark!
One thing i am unsure about. In your last example/post, we are 4th time back into the demand zone. Why would be expect another bounce and even one stronger than the last ones ? (Since target in your example is way up to Area 4 cause of the "free way")Ignored
DislikedDGB, in my post I was quoting Mark "Supply / demand consumption can exist without price being squeezed within a wedge or channel" so I attached a recent price behavior of demand consumption, now if its not related to what Mark was describing then my apologies for the interference. Anyhow, you've commented on my chart with an excellent analysis but how about the below chart, a rejection wick "premature bounce" deep into the supply zone consuming supply then a second time back...what do you think happened next?
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