THE PERFECT ENTRY IS OFCOURSE A RETRACE TO THE SWING HIGH LEVEL BUT THERE IS TIMES WHEN LOWER TIME FRAMES CREATE ZONES THAT CAN PREVENT A RETURN TO THE FB LEVEL THIS IS WHAT HAPPENED TODAY WITH EURCAD ZONE WAS CREATED ON 1H - ITS A LITTLE MESSY AND NOT THAT OBVIOUS IF YOU ARE NOT AWARE OF THEM BUT AS YOU CAN SEE IT PREVENTED THE MARKET RETRACING TO FB...
PLEASE IGNORE CHARTS ON THE RIGHT IF YOUR LOOKING FOR A PICTURE PERFECT PRE SET UP THIS IS IT THE KEY INGREDIENTS 1ST PART OF THE SETUP 1 4H SUPPLY 2 STANDOUT SWING HIGH 3 BREAKOUT BUYERS - WHO HAVE NO CLUE OF SUPPLY-DEMAND 2ND PART 1 BEAUTIFUL REACTION AT 4H SUPPLY PINPOINT PERFECT SUPPRESSION OF MOVE UP RIGHT AT THE EDGE OF SUPPLY...
Watching for rejection of daily zone then break and retest of 30m zone - will be shorting eur pairs if this plays out
supply and demand analysis using custom indexes - looking to short nzd against eur if both indexes correlate ie both pull back into daily zones i like use indexes to check overall strength of a currency, in this example using sup/dem method eur is in an uptrend , nzd is in a down downtrend the BUT - parts is will they correlate regarding pullbacks to...
WEEKLY trend is down , #1 best case wait until daily sup to short #2 look for longs off daily /4 demand zones looking to long aud pairs that correlate with index , daily demand in play with 4h trend long looking for long opportunities on aud pairs that retrace to 4h/daily dem - targets daily sup zones
LOOKING TO HIT 1ST TARGET - THEN DOWN TO 2ND TARGET -- NEWS IS THE ONLY THING THAT MAY EFFECT THIS TRADE -- IF WE BREAK RED DOTTED LINE ABOVE THEN DIVERGENCE IS OVER -- WE MAY SEE A PUSH DOWN TO 1ST TARGET THEN RETEST OF DOTTED LINE THEN MOVE TO THE 2ND TARGET -- MOST DIVERGENCE SET UPS ALWAYS HAVE A RETEST MOST LIKELY A 50/60 FIB LEVEL BUT CAN GO...
LOOKING FOR IT TO REACH 1.6680 LEVEL , NEWS MAY SLOW IT DOWN
should hit target level in green -- has done is retrace no sell off