HOW TO FIND KEY AREAS TO TRADE FROM IN ROUGH MARKET CONDITIONS
AS ALWAYS BOOSTS ARE NOT NEEDED BUT MUCH APPRECIATED AND LETS GET RIGHT TO IT.
FIRSTLY.... WHAT'S A KEY AREA??
- A zone in which price has frequently revisited, and appears to be an area price gravitates to whenever in that general area AS WELL AS breakouts and big moves tend to arise particularly from these areas. (this could be marked off with a box)
NOW THAT THAT'S OUT OF THE WAY.... HOW DO I FIND IT??
- EASY! JUST go on your analysis timeframes (4h, 2h or 1h, whichever price action is cleanest) and find an area that price tends to stop at/reject more than twice from and mark the box on the two farthest reaching candles EXHAUSTION POINTS TO THE CANDLE BODY ONLY AND DRAG THAT BOX TO THE RIGHT A DECENT AMOUNT AS ITLL BE A FREQUENTLY VISITED ZONE (SOMETIMES THIS HAPPENS IN THE DEAD CENTER OF A PUSH AND PRICE SUDDENLY BECOMES STATIC....SAME RULES APPLY)
THEN........BREAK IT DOWN ON A TIMEFRAME THAT IS EXACTLY 1/4th OF YOUR CURRENT TIMEFRAME (4H > 1H >15M OR 2H > 30M > 5M) AND GATHER MORE INFORMATION ON THE DIRECTION OF PRICE BASED ON TREND, MARKET STRUCTURE CANDLESTICK ANALYSIS AND MOVING AVERAGES AND YOU WILL SEE EXACTLY WHERE ITS GOING.
THEN YOU GO BACK TO ORIGINAL TIMEFRAME AND PUT BOTH DATA PIECES TOGETHER. WITH ALL THIS DATA, GO BACK TO YOUR LOWER TIMEFRAME AND DETERMINE THE RULES FOR YOUR ENTRY WHETHER ITS STRUCTURE BREAKING AND WAITING FOR THE RETEST OR WHATEVER YOUR RULES ARE.... IF YOUR ZONES ARE PROPERLY MARKED OFF USUALLY YOU CAN GET A BEAUTIFUL PERSPECTIVE ON PRICE ACTION LIKE MY SCREENSHOT BELOW.
ANALYSIS TIMEFRAME (1H)
BROKEN DOWN ON AN ENTRY TIMEFRAME (15M)
NOTICE HOW THE PERSPECTIVES BLEND IN THIS TRICKY MARKET AND THE OPPORTUNITIES ARE CLEAR??? THIS IS HOW I APPROACHED NFP!! AS A MATTER OF FACT ITS PRETTY MUCH THE SAME CHART SINCE NFP AND BEFORE (A MONTH AGO) AND ITS STILL RELEVANT!!! JUST KEEP IT SIMPLE AND THATS HOW YOU FIND KEY AREAS TO TRADE FROM GUYS!!!
LEAVE A BOOST OR COMMENT IF YOU WANT ANY QUESTIONS ANSWERED IN ANY FUTURE POSTS!
FIRSTLY.... WHAT'S A KEY AREA??
- A zone in which price has frequently revisited, and appears to be an area price gravitates to whenever in that general area AS WELL AS breakouts and big moves tend to arise particularly from these areas. (this could be marked off with a box)
NOW THAT THAT'S OUT OF THE WAY.... HOW DO I FIND IT??
- EASY! JUST go on your analysis timeframes (4h, 2h or 1h, whichever price action is cleanest) and find an area that price tends to stop at/reject more than twice from and mark the box on the two farthest reaching candles EXHAUSTION POINTS TO THE CANDLE BODY ONLY AND DRAG THAT BOX TO THE RIGHT A DECENT AMOUNT AS ITLL BE A FREQUENTLY VISITED ZONE (SOMETIMES THIS HAPPENS IN THE DEAD CENTER OF A PUSH AND PRICE SUDDENLY BECOMES STATIC....SAME RULES APPLY)
THEN........BREAK IT DOWN ON A TIMEFRAME THAT IS EXACTLY 1/4th OF YOUR CURRENT TIMEFRAME (4H > 1H >15M OR 2H > 30M > 5M) AND GATHER MORE INFORMATION ON THE DIRECTION OF PRICE BASED ON TREND, MARKET STRUCTURE CANDLESTICK ANALYSIS AND MOVING AVERAGES AND YOU WILL SEE EXACTLY WHERE ITS GOING.
THEN YOU GO BACK TO ORIGINAL TIMEFRAME AND PUT BOTH DATA PIECES TOGETHER. WITH ALL THIS DATA, GO BACK TO YOUR LOWER TIMEFRAME AND DETERMINE THE RULES FOR YOUR ENTRY WHETHER ITS STRUCTURE BREAKING AND WAITING FOR THE RETEST OR WHATEVER YOUR RULES ARE.... IF YOUR ZONES ARE PROPERLY MARKED OFF USUALLY YOU CAN GET A BEAUTIFUL PERSPECTIVE ON PRICE ACTION LIKE MY SCREENSHOT BELOW.
ANALYSIS TIMEFRAME (1H)
BROKEN DOWN ON AN ENTRY TIMEFRAME (15M)
NOTICE HOW THE PERSPECTIVES BLEND IN THIS TRICKY MARKET AND THE OPPORTUNITIES ARE CLEAR??? THIS IS HOW I APPROACHED NFP!! AS A MATTER OF FACT ITS PRETTY MUCH THE SAME CHART SINCE NFP AND BEFORE (A MONTH AGO) AND ITS STILL RELEVANT!!! JUST KEEP IT SIMPLE AND THATS HOW YOU FIND KEY AREAS TO TRADE FROM GUYS!!!
LEAVE A BOOST OR COMMENT IF YOU WANT ANY QUESTIONS ANSWERED IN ANY FUTURE POSTS!
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