CADCHF - Supply Zone SELL 4H
Updated
This idea is based on my understanding of order flow.
A significant drop allowed me to define a supply zone where open sell orders are left over (red zone). After the drop , the price has recovered in a compression zone (Green zone). The compression zone ensures that in this area, where the price is slowly rising, the buy orders are "eaten up" piece by piece.
If the price moves up to our supply zone, we can expect a pullback as there are still open sell orders in the zone that are now triggered.
I am looking for my target on the last demand zone which is exactly before the significant rally. Thats good for the idea!
If the demand zone after hitting TP breaks, we can go for the second target. Important: Only if demand zone breaks!
Due to our compression zone, in which almost no buy orders are now placed, we can assume that our second target can be reached quickly at the beginning of the compression zone.
Infos about the Trade:
Entry: 0.7526
SL: 0.75605
TP1: 0.73903
TP2: 0.72659
Risk: 34.5 Pips
Reward TP1: 136 Pips
Reward TP2: 260 Pips
Risk/Reward ratio: 3.94
Use proper money management!
I recoment to risk max 2% of your entire balance if it hits SL.
Happy trading!
I'll keep you up to date and give trade updates. Stay tuned!
A significant drop allowed me to define a supply zone where open sell orders are left over (red zone). After the drop , the price has recovered in a compression zone (Green zone). The compression zone ensures that in this area, where the price is slowly rising, the buy orders are "eaten up" piece by piece.
If the price moves up to our supply zone, we can expect a pullback as there are still open sell orders in the zone that are now triggered.
I am looking for my target on the last demand zone which is exactly before the significant rally. Thats good for the idea!
If the demand zone after hitting TP breaks, we can go for the second target. Important: Only if demand zone breaks!
Due to our compression zone, in which almost no buy orders are now placed, we can assume that our second target can be reached quickly at the beginning of the compression zone.
Infos about the Trade:
Entry: 0.7526
SL: 0.75605
TP1: 0.73903
TP2: 0.72659
Risk: 34.5 Pips
Reward TP1: 136 Pips
Reward TP2: 260 Pips
Risk/Reward ratio: 3.94
Use proper money management!
I recoment to risk max 2% of your entire balance if it hits SL.
Happy trading!
I'll keep you up to date and give trade updates. Stay tuned!
Trade active
Entry hit! Lets see how it works out :)Stay tuned
Note
Check the 1h chart out. it's looking really good for our idea.
Stay tuned!
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