DislikedQuick question Akt if I may please Essentially you have 3 time frames.... 1) Curve, 2) Momentum & 3) Trade (ie one chart for each) So here's the scenario ............ 1) Curve is at Supply 2) Momentum line is broken 3) Supply has formed on the trade chart and following a retrace back to it your now in short Question : What would you do if during this short a downward momentum line is formed and it gets broken, do you..... a) Ignore and stick to the original plan of short b) Exit the trade ThanksIgnored
It is important that where price is on the supply-demand range is kept as the most important deciding factor in the decision as to what actions to take.
If price is at larger time frame supply such as a monthly zone for example, the expectation is for the monthly zone to take effect and start dominating the lower time frames. The break of an uptrend line on the daily inside the monthly SZ as you rightly stated, gives you a supply zone to short at.
The ability to draw a down trend line on the daily immediately tells you that the monthly has taken over and is now causing selling to become predominant.
If and when the daily down trend line is broken, then no more shorts will be allowed on the daily chart, unless the daily SZ being shorted is inside the monthly SZ. If it is not, then weekly SZs alone will be what is allowed to short.
I hope that helps you
best wishes
Be careful what you think because your thoughts run your life..Solomon
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