{quote} Look again at the h1 chart... In your daily chart, what is it exactly you are highlighting??? Take a deeper and longer look at it. {image}
ReadtheMarket - Supply and Demand with Price Action
- #3,107
- Apr 28, 2017 12:01pm Apr 28, 2017 12:01pm
{quote} Hi there, FTR = Failed to return = for example we have an engulf of an FL that is holding price up/down (say up, so the engulf is a bearish sign) then price tries to go back up but fails to make a HH and drops. That failure is the FTR... This is a very general definition. As mentioned before every FL is also an FTR but not all FTRs are FLs. FLs come in different forms and sizes, but what is important is what is being engulfed. We draw FLs 1) from the point of engulf (of something important) 2) To the deepest part of the retrace following...
Daily
4hr
- #3,111
- Edited 3:38pm May 1, 2017 12:04pm | Edited 3:38pm
Here is an example The Dax recently broke the historical high at candle A as seen on W1. What happened there other than the French elections?? Lets drop down a TF. On D1 we see that same move also broke the most recent high of 2017.04.03. All things being equal and for now lets ignore that huge gap (Light Blue zone), Lets see whats going on in H4. On this TF I see two important levels highlighted, BUT this is still not the whole story. Because the Decision Point to engulf could be anywhere inside candles B & C. They each engulfed different levels....
on the 2 scenarios you sketched, the trade opportunity is only when the price returns to the FL right? not when they form the first time and pop or drop?
a example here
- #3,112
- Edited 8:49pm May 1, 2017 8:35pm | Edited 8:49pm
{quote} That flag limit that was ignored as you say holds no significance whatsoever because it did not engulf anything important on the way up to its left. Meaning the bottom of its retrace is not important as well. Charts are full of FLs but our job is to figure out which ones are important. You have several types of FL as well... Local and non-local ones, with the former carrying no weight unless it becomes a DP itself. Attached is something that might help (all credits go to Pucci - RTM) {image}
We're looking for how and where price came from and where its going. IT's reached for a better price through compression faking the Breakout traders eventually taking their SL's on return and taking SL's from the sellers to a higher flag.(if you pull out some on the daily it's the big candle with the wick) touched a RBD/supply/Flag, immediately turned and blew through the flag in question on the daily, creating a S/R flip below which we know is an area of interest. Price eventually returned to the FL in question and has since had 2 reactions to it.
When price shoots away from the flag (see 4hr); gathers orders, turns and completely engulfs said flag, slowly compresses from that area, then on return (2x) has a reaction to that area. Regardless of the boxes we draw, Price itself has proven that this is a significant area.
- #3,116
- Edited 4:22pm May 3, 2017 3:24pm | Edited 4:22pm
{quote} Think in terms of bulls and bears. For the bears to be conquered, a bull move must engulf the source (very tip) of the bear move, retrace back on itself and move out, beyond its initial engulf of the bear tip. Now the bearish tip can be deep or shallow... but it must also have engulfed something of the bulls that was important i.e. FTR, FL, RBD, DBR etc... the combination has to always be bear-bull or bull-bear. Yes there are decisions in between that could be bullish-bullish or bearish-bearish, but the war is always between the opposites,...
I do want to thank you for the friendly scrutiny of the charts, as this only makes better Traders!!
