Beautiful supply bar but where would you short this guys? Be honest, hindsight is a wonderful thing i know but i would love to see your entries.
I`m fed up with calling trades right but entering to soon and getting stopped out, twice this week!
I think there is a couple of ways to get an entry, depending if the trader is more aggressive or wants more confirmation.
1. Wait for the price show some confirmation. In this case, can be a shift from the the distribution area(some call it a gotcha! bar, others call it a shift bar, etc.). Then, you enter on the retest of the base of the distribution phase. Below is the same usdjpy 1hr chart with some comments showing this idea.
2. you can go down to a smaller time frame, like the 15min or even the 5min charts and look for the same behavior there(markets are fractal). I mean, look for price go up and show a distribution on the smaller time frame. Below is a 15min chart of usdjpy, showing this idea:
I think these are the best approaches.
Remember that the market will always follow the same basic structure or behavior: distribution(or accumulation) starts -> price forms a range -> price breaks the range -> price retests the range
And, in between, we can have the stop runs(shake outs or up thrusts). And, very important here is that, although the structure is the same, it can take many different forms so, don't forget to look to your charts to identify these forms. Sometimes the range is very small, very subtle. Other times, it takes a lot of time and is easily recognized.
Hope it helps a bit.
Cheers!
