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

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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

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