Unlike conventional Price Action Analysis, which relies on countless chart patterns, Supply Demand Strategy focuses only on four high-probability price formations. Rally Base Drop (RBD) is one of the four price formations which lay the foundation of the Supply Demand Trading Strategy.
Rally Base Drop Pattern
RBD is a reversal price pattern, which one can...
Myth: If the price approaches a level repeatedly, and gets rejected from it, this means that the level is very strong.
Reality: After each touch, the level becomes weaker and weaker due to the absorption of the residual orders.
Underlying concept:
1. Whenever the price keeps approaching a certain level, there are pending sell orders that are waiting to be...
