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Originally Posted by Porkpie Previous price action demand/sell levels will give you clues as to the strength of an area when price returns. If there was a strong down move from a supply area then when price returns it is likely to be a high probability trade for a sell. If the price stepped down the strength is not as strong so it might best be to avoid selling at this level or at least wait for price to enter the zone and sell on a pull back out of the zone. It is very difficult to pinpoint the actual sell area and its best to use zones based on previous price action. Sometimes... |
This is a great post! I believe I read or saw somewhere(maybe Sam Seiden?) that the faster the price travels to a previous area of supply/demand that the better chance it has to react to those points.
I also read about the more times the supply/demand area is hit, the weaker it becomes.
These facts could be traded with charts alone(indi free!)