Medium strong fresh supply zone ahead, possible retracement, a short opportunity.
Stuff to remember:
— First look for significant move, then follow it to its origins where you might find a suitable level to evaluate further
— Make sure the initial move is significant on the same timeframe as the one you use for viewing your candidate level most clearly
— Check the distance that price traveled before the trend ended, longer distances mean larger initial imbalances and improved probabilities in the future
— The strong initial move can contain a few small retracements but not so many that make this move slow and weak
— Avoid opposing levels on the same and immediately higher timeframes, prefer to have a clear road ahead for your trade to run
— Make sure your level is placed correctly (low for Demand, high for Supply) in relation to the big picture's important tops and bottoms
— Trading the first return of price to a valid "fresh" level carries the highest probabilities due to the larger imbalance
— A valid level is considered "fresh" if price has not returned to it since its creation. It has nothing to do with how old the level is
— Trading only the first return of price to a valid, properly evaluated level can greatly increase your win ratio. Trading second or other subsequent returns will only dilute your trading edge.
Zoom out... The candels are only important in climatic zones...
The trees ... the forest... how was it?... :)
fxstudent299
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No offense, really like your basic educational stuff, so much value there.
But, messages like "Trade closed: target reached", without calling your entry, stop-loss and closing levels in advance, take a lot of credibility from you.
The retracement here was very small, so either you go for very bad risk-return ratios or I miss something.
Again, no offense, just my personal impression of THIS specific idea/trade and the communication around it.
Regards, Andreas
tradewonk
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@fxstudent299, my target is always minimum 1:1.5 of the blue zone. Sometimes after it hit 1:1.5, i set it to break even, and take profit at 1:3/4/5 ect. In that case i took profit already at 1:1.5 because the zone is not very strong.
The trees ... the forest... how was it?... :)