We expect a stronger move because those previous moves consumed the supply in between the demand and Area 3.
With regards expecting a bounce there - we wouldn't ordinarily as it's the 4th touch - but a) the source had not been tested yet so we couldn't conclude with 100% certainty that the demand had been consumed and b) those previous lows are signs of accumulation.
Thanks again. Don't really know what you mean by accumulation (i assume big guys gradually accumulating long positions) , and this is a sign i gotta start reading this whole thread from scratch.
I am really glad i found this thread. Thank you again very much!
I assume Price shot up right thru that level since a big chunk of the supply at that level was consumed thru that spike.
I understand now what your example was about.
You were referring to the cases when a SD is tested multiple times until it gets consumed, and eventually you will have a break of that zone. Or else called a SD flip.
I was referring to the specific setup of consuming S/D while going into a fresh SD zone which would reverse the price violently , since we have no SD along the way back. Glad we cleared it up...
What FXS was showing in his charts was what I term 'location history' - can we conclude from the previous price action at a specific supply/demand zone that the supply/demand has most likely been consumed - i.e. in this case pre-empting a breakout through the zone.
Thanks for the comment and the charts FXS.
Below is an example of supply consumption which tells us where price is very likely heading if we get a rejection from demand.
There is lots of PA stuff in there too but what I want to focus on here is that if you get suitable PA from the...
Hey LJ, refering to your post, did you meant to write "Demand" instead of "Supply" ...........
Hey LJ, refering to your post, did you meant to write "Demand" instead of "Supply" ...........
Update - took 75% of the first area price could have bounced as per previous analysis - left 25% in play due to the strong selling in the move down and my entry was high enough to withstand any likely retracements (if price was going to continue to fall.
Closed the remaining 25% after the reaction of a lower DP and a FB below the previous low (after former demand couldn't hold as supply). Total gained +4.27R
Hello 5 , your CADCHF chart is really interesting . But I have a Question . Why are you opting to choose the area that you have chosen for a reversal where as the move originated from the imbalance zone lower then that one, the one at the bottom?
