DislikedAKT - AUTOKON wondering if you could shed any light on autokon 30m trade i didnt think the level was fresh - because soon after it was created it was revisited? am i correct in thinking this 2nd the move away wasnt large enough ? any thoughts appreciated thanks winston {image}Ignored
in older post,AKT explain thisicture 2 of supply:
DROP BASE - DROP
This type of supply zone is a continuation pattern which by definition implies that they are best used when there is a trend underway (hence why the pattern is a continuation pattern, i.e. continuing a pre-existing trend).
They are usually found in the middle of the curve (again, this is why they are linked to trends because remember what we do in the equilibrium area? we follow the trend!)
They do not work as well for trend reversals UNLESS they are embedded within the larger timeframe zone. For example, say you use the monthly chart as your curve timeframe and price has now arrived at monthly supply. You know you are the extreme of the curve and should be looking for opportunities to sell. Since the monthly SZ is too wide for you to use as an entry zone, you take an X-Ray of that monthly SZ to take a closer look inside it.
This X-ray is taken using your daily lens, your daily timeframe.
Lo and behold, you find embedded within the monthly SZ, a daily DROP-BASE-DROP SZ.
You have just found your entry.