Another clear example, on GBPUSD this time, of what would happen if you try to short a speedbump supply (continuation pattern) when demand is in control (D1 demand has been hit). A H1 speedbump supply which is diddle in the middle. Price hit the D1 demand proximal line and demand was in control.
The speedump supply would be trying to short the markets when the buyers are supposedly in control, we'd be selling after a big decline in price. That's why the level is in purply stating "too low". It would be diddle in the middle. See how the supply was absorbed and now it's formed a demand area.
A new H1 demand area is being formed (not yet until it makes a higher high), but I'm waiting for price action to make a higher high and absorb that little supply zone in order to validate my long entry.
I will cancel the long idea if the upper supply is hit though.
The speedump supply would be trying to short the markets when the buyers are supposedly in control, we'd be selling after a big decline in price. That's why the level is in purply stating "too low". It would be diddle in the middle. See how the supply was absorbed and now it's formed a demand area.
A new H1 demand area is being formed (not yet until it makes a higher high), but I'm waiting for price action to make a higher high and absorb that little supply zone in order to validate my long entry.
I will cancel the long idea if the upper supply is hit though.
Set and Forget supply and demand trading community