How to trade supply zones - Drop Base Drop and Rally Base Drop.

-

 

BTC/USDT 3 hours chart - DROP BASE DROP Pattern

Above is an example of a Drop Base Drop supply pattern.

The pattern is having ...

1. One leg-in candle in red.

2. One leg-out candle in red.

3. One base candle in blue.

The price came up touched the supply zone, and went down. This indicates that the supply zone had some pending sell orders.


BTC/USDT 3 hours chart - RALLY BASE DROP Pattern

Above is an example of a Rally Base Drop supply pattern.

The pattern is having...

1. One leg-in candle in green.

2. One leg-out candle in red.

3. One base candle in blue.

The price came up touched the supply zone, and went down. This indicates that the supply zone had some pending sell orders.

Below are the features of a powerful supply zone.

1. Should have 1-3 base candles.

2. Should have two or more leg-out candles.

3. Should cross and go below one or more recent support levels.

Location: Hyderabad, Telangana, India

Comments

Post a Comment

Popular posts from this blog

From Bust to Booyah! How to Bounce Back After Blowing Up Your Trading Account

-
Image
Losing all your money in trading can be a devastating experience, but building resilience is key to recovery and future success. Here are some strategies that can help: 1. Acceptance and Self-Compassion:    - Accept the loss and avoid self-blame. Understand that losses are part of trading.    - Practice self-compassion. Treat yourself kindly as you would treat a friend in the same situation. 2. Reflect and Learn:    - Analyze your trades to understand what went wrong. Look for patterns or mistakes.    - Use this analysis to improve your strategy and decision-making process. 3. Reframe the Experience:    - See the loss as a learning opportunity rather than a failure.    - Focus on the lessons learned and how they can make you a better trader. 4. Emotional Management:    - Practice mindfulness or meditation to manage stress and maintain emotional balance.    - Engage in activities that reduce stress, such as e...
Read more

Learning to Lose: How Following Failed Stock Gurus Can Tank Your Trading Dreams

-
Image
Following failed online influencers and stock trainers can negatively impact your trading for several reasons: 1. Misinformation : Failed influencers might spread incorrect or outdated information, leading you to make poor trading decisions. Their lack of success could be due to flawed strategies that they continue to promote. 2. Unrealistic Expectations: Many failed influencers tend to exaggerate their success or present trading as an easy way to make money quickly. This can set unrealistic expectations, causing you to take excessive risks or become frustrated when results don’t match your expectations. 3. Emotional Influence : Watching someone who isn't successful can create doubt and anxiety about your own trading strategies. Their negativity and lack of confidence might seep into your mindset, making you second-guess your decisions. 4. Lack of Accountability : Influencers who aren't successful might not take responsibility for their failures, instead blaming external factor...
Read more