Disliked{quote} Hello Vsm, Yes that is absolutely correct. I know you are thinking right now, "how then can i buy since there are so many weekly supply zones on the way up as price travels from monthly demand to monthly supply". I know because that was the question I had. What I did not understand at the time was that as price travels up from monthly demand and starts removing those weekly SZs in order to get to monthly Supply, gues what, it is creating demand zones on the weekly chart that I can then look to buy at!. That dear friend, is the fractality...Ignored
I request you to review my analysis for USDCAD till it break 1.2830 on 12.04.2016, to day it may be hindsight but it will help me to confirm my thinking process is correct.
Monthly
1) New demand zones created & earlier supply zones were taken out.
2) Up trend line is respected
Considering condition no 1 & 2 trend is clearly up hence long is the way to go.
At which level to go long?
Price is bouncing off 1.4689 monthly supply in control hence all demand zones on weekly & daily not valid,
Level to go long on monthly 1.3315 stop at 1.2820
Weekly
Trend was clearly up as new demands were created & old supply levels were removed, Trend line was respected .
Long was the bias.
W dz1 at 1.3955 was not high odd to go long as price was bouncing from Monthly supply in control
W dz 2 at 1.3160 was nested in monthly demand zone in consideration to go long, how ever it was a cp pattern, waited for confirmation on daily could not triggered.
W dz 3 at 1.2910 was a valid level to set & forget as it was DBR pattern, hence went long at 1.2910 stop 1.2820, target 1.3800
Daily
As W dz1 was broken & daily candle closed below that level, went short at Dsz1@ 1.3940 stop 1.4115 target 1.3160, This was a counter trend short sell.
All those supply level D sz2@ 1.3255 & D sz3 at 1.3185 were not valid short as price was in monthly low curve.
Out come of my long trade at Wdz3:-
Although my analysis was correct the long trade at W dz 3 level could not perform the way I was expecting, in fact buyers at wdz3 can not remove daily supply D s z2 @ 1.32 60, I was stopped out at break even & all my gain was eroded on that long trade.
Was there any method to judge at that time that buyers at W dz3 were not strong enough to take out the D sz2 zone?
Thanks in advance.
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