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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.

Formation of a boring candlestick between two bearish exciting candlesticks in an downtrend.

SUPPLY ZONE(DROP BASE DROP)

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Formation of a boring candlestick between two bearish exciting candlesticks in an downtrend is called drop base drop(DBD). Drop base drop is a continuation pattern in technical analysis that is used to identify potential selling opportunities. The pattern consists of three parts: 1. A sharp drop in price. 2. A period of consolidation or sideways movement. 3. Another sharp drop in price. The DBD pattern is often seen at resistance levels, which are areas where sellers are likely to step in and push the price lower. When the price breaks below a resistance level, it can create a strong sell signal. SUPPLY ZONE drop base drop(dbd) in BTC/USDT weekly chart Here are some of the key characteristics of the DBD pattern: The first drop in price should be at least 2% to 3%. The consolidation(base)  period can have 1 - 3 candlesticks. The second drop in price should be at least as deep as the first drop. The DBD pattern is not always a reliable indicator of a sell signal, but it can be a use...