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tradewonk
Oct 23, 2017 1:51 PM

GBPCHF 

British Pound/Swiss FrancFXCM

Description

Supply zone ahead, it's not the strongest one, but it could make a retracement before breaking through.

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

Trade closed: target reached

Comments
culek
thank you for the great analysis
tradewonk
@culek, No problem!
cawepirorlu
thank you for the analysis!
tradewonk
@cawepirorlu, No problem!
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