When Demand Zones Play ‘Bounce or Break’ – A 5 Minute Candlestick's Minute-by-Minute Drama!
Here’s a detailed minute-by-minute timeline of price behavior when a 5-minute candlestick interacts with a demand zone. This comparison highlights bouncing versus failing from the demand zone. 1. BOUNCING FROM A DEMAND ZONE - Minute 1: Initial Approach - Price slows down as it approaches the demand zone. - Smaller-bodied candles with long lower wicks appear, signaling buyer absorption. - Volume begins to pick up slightly, indicating interest near the zone. - RSI/Momentum indicators show signs of flattening or slight divergence (e.g., higher lows in RSI). - Minute 2: Testing the Zone - A wick penetrates into the demand zone but doesn’t close significantly below it. - Bid-side volume increases on tools like the depth of market (DOM) or footprint charts. - Bullish divergences strengthen. - Market ...