Distribution
Us Oil distribution. Sell zone in red, target in green.Hello my beauties.
All you need for this trade setup is on the chart.
If you find this idea to be helpful like, follow, and drop a comment below if you'd want me to analyse a different pair.
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Peace.
Luca, TrickleDownFX
Weekend Analysis + Market Re-cap This weeks video is me going over 3 potential trades this week
NZDCAD (Short)
AUDCAD (Short)
CADJPY (Long)
I break down exactly what I am looking for right down to the 15min/5min TF's
Hope you all have a great rest of your weekend, Christmas, and have a fantastic 2022
Take care
Ben
USDJPY - Signals for a Trend Change AppearedHi Traders!
The following signals indicates a Trend Change with Down-Movements:
Strong Weekly Resistance --> This is a high price and people might sell off again.
Daily MACD Divergence --> The bullish Momentum sinks. People may feel a burden when buying
the price and they actually want to sell it.
Head and Shoulders Pattern --> People know this pattern and its affect of changing the Trend. It includes a Lower High.
First Lower High --> Connected to H&S Pattern and shows on the one hand that
people are rejecting higher prices and on the other hand that
people are willing to sell for/from lower prices.
MAs meandering --> It indicates, that after the Uptrend the average 200, 50 and
20 people neither buy nor sell. This indicates the end of the Trend and a potential Trend Change.
The TPs are the
- daily Support of this whole consolidation (orange box) process
- the H4 Support between daily and weekly Support
- the weekly Support.
If you have any questions, another POV or any comments, feel completely free to share them!
Thanks and successful Trading :-)!
EUR/CAD Wyckoff Short opportunity!Possible selling opportunity in EUR/CAD very soon! As you can see it looks like we have been going through a type 1 Wyckoff Distribution schematic at our point of interest which means that institutions and banks could be trying to gather liquidity by stopping out all the buyers and sellers before a big push off. As its a distribution schematic we will be looking to go short. Price has come into a key last area of support which if we see bearish selling pressure from here i will be looking to enter. To add confluence to this we are bullish on CAD and yesterday we noticed a big Wyckoff Accumulation schematic on CAD CHF which has been melting today from which i will be looking for another entry point!
Feel free to leave any comments about the idea!
Wyckoff distribution schematics for USOIL!Hello my beauties.
I think oil has been clearly showing signs of a distribution, with a price target measured on the basis of the range volatility, identified by the green area underneath.
If you find this idea to be helpful like, follow, and drop a comment below if you'd want me to analyse a different pair.
Consider supporting me if you think I am providing you with value.
Peace.
Luca, TrickleDownFX
EURUSD building cause for a big moveEURUSD looks like it is setting up to provide some great momentum heading into 2022. The daily and 4h timeframes are still showing bearish market structure forming lower highs and lower lows, however, price has now paused and started moving laterally at a weekly demand zone. This is key. Price action looks to have the classic features of an accumulation or distribution schematic where buyer and seller commitment is being tested at the highs and lows of the range. I see a cause for both a continuation of bearish momentum or for the higher time frame (weekly) to kick in meaning price could become bullish, at least in the short term. Either way, I'll be trading at the range extremes (highs and lows) and waiting for further developments over the coming days as to the longer term price direction. Interesting one to watch...
Black Swan!Alright people,
In my previous analysis i've pointed out this distribution schematic on a weekly timeframe. I've digged in further.
Re-evaluating the whole structure since last October as distribution changes everything!
The first step to confirm this schematic would be loosing 43.200. Once lost, we will enter in to the previous accumulation zone and POC of the whole distribution will be the next stop at 34.361
Once we loose 34k, next stop will be the Fib. zone at 24-27k. Everybody will be expecting a new accumulation at this point, but the fun will begin there. We should be looking for a continuation pattern first and that is redistribution which will end up with a black swan at 8.600 where the POC of the whole distribution awaits! - That's a 87% correction!
Now, if 1.678% increase from Covid Crash at 3.880 to 68.997 was possible, 87% correction from 68.997 to 8.600 is certainly possible as well. That's still up 2.2x from previous black swan!
And guess what, we will hit 140k after that! Because everybody would be rekt by then!
Did you like my imagination?
This Can't be Happening Right, Right?Hi all,
On a weekly timeframe, bigger picture is matching a double top distribution which we have seen on the smaller timeframe recently.
Not much to say really. This schematic suggests a mark down below 28.754 towars 24-27k and further after a weak bounce. It could vey well end up at 19.302 (70% correction) which looks impossible today. but remember Bitcoin was just $3.880 on March 2020.
I don't want to be overly bearish, but this is what the schematics suggest.
Markets are waiting for FED meeting on December 14-15 and this could trigger the real mark down of the mega structure as i've laid out here.
Not loosing money, is making money in this market, so stay safe and use a stop loss.
What are Supply and Demand Zones and How to Trade with Them?What are Supply and Demand Zones?
▷ Demand Zone (Accumulation Area):
Accumulation comes from a Latin word meaning to increase something over time.
A strong uptrend can only exist if buyers outnumber sellers. During a trend, price moves up until enough sellers enter the market to absorb the buy orders. The origin of strong bullish trends is called an accumulation or a demand zone. Demand Zone is where traders are willing to buy aggressively because the balance has shifted to the demand side. Here, buyers are dominant and sellers weak.
The demand zone represents a period of implicit buying, typically by institutional buyers, while the price remains fairly stable. This area is characterized by mostly sideways price movement. Before a trend starts, price stays in an demand zone until the “big players” have accumulated their positions and then drive price higher.
This can be contrasted with the Supply Zone, where institutional investors start to sell.
▷ Supply Zone (Distribution Area):
Bearish trends are created when sellers outnumber buy orders. Then, price falls until a new balance is created and buyers become interested again. The origin of a bearish trend wave is called a distribution or a supply zone. At Supply Zone traders are willing to sell aggressively because the balance has shifted to the distribution side. Here, sellers are dominant and buyers are weak.
Support and Resistance Levels vs. Zones
If you have an idea of how to trade with support and resistance zones, you might find supply and demand zones very similar.
You won’t be mistaken; Supply and demand zones are natural support and resistance levels. You’ll often find supply and demand zones just below/above support and resistance levels.
Types of Supply And Demand Patterns
There are two types of patterns: “Reversal” and “Continuation” patterns.
While a pattern is forming, there is no way to tell whether the trend will continue or reverse. As such, careful attention should be paid to whether the price breaks above or below the zone.
▷ Continuation Patterns
If price continues on its trend, the pattern is known as a continuation pattern.
We have two continuation patterns: “Rally-Base_Rally” and “Drop-Base-Drop”
▷ Reversal Patterns
When price reverses after a pause, the pattern is known as a reversal pattern. The established trend will pause and then head in a new direction as new energy emerges from the other side (bull or bear).
Reversals that occur at market tops are known as distribution patterns. Conversely, reversals that occur at market bottoms are known as accumulation patterns.
We have two reversal patterns: “Rally-Base_Drop” and “Drop-Base-Rally”
How to Find Supply and Demand Zones?
On a price chart, the demand zone is characterized by sideways price movement on above-average volume. When a stock price doesn't fall below a certain price level, and moves in a sideways range for an extended period, this can be an indication to investors that the stock is being accumulated by investors and as a result, will be moving up soon.
The demand and supply zones are encompassing the base on the beginning of the move. The most important thing is to first finding a sharp move in either direction, after which you can identify its starting point and roughly define the supply or demand zone:
• Look at the chart and try to spot successive large candles.
• Find the base from which price started the quick move. Usually, before that you have a small sideways move, that is where your supply / demand zone is.
• Draw the zone
It is very hard to be precise with those levels and here it is more of an art than science. To make it easier to identify these levels, you can use another tool for confirmation.
How to Trade with Them?
One way to trade with supply and demand areas is reversal trading. After identifying a previous strong market reversal, wait for the price to return to that area. If a false breakout occurs, the chance of seeing a successful reversal is extremely high.
Some candlestick patterns such as "Engulfing", "Pin Bar" and "Tweezer Blades" can help you identify trend reversals.
Be careful, trading in the opposite direction of the trend is very risky. Technical analysts typically recommend assuming a trend will continue until it is confirmed that it has reversed. Trend reversal trading can be a profitable way to trade the markets. However, like any other trading strategy, there is a correct and a wrong way to do it.
Pros and Cons
Being able to recognize whether an asset is in the demand zone or the supply zone is helpful to investing success. Demand Zone is the origin of a big rally in price. Identifying this area could help investors spot good entry points into an investment before its price begins to rise.
Once the price leaves an demand zone, not all buyers got a fill and open interest still exists at that level. Supply and demand traders can use this knowledge to identify high probability price reaction zones.
As with anything else, supply and demand zones have their cons, as well. Understanding chart movements such as those seen in the accumulation area can work well during times of relative stability. Still, prudent investors know to pay attention to larger economic events that can quickly reconfigure charts (like the covid-19 epidemic)
Key Points
• Accumulation / Re-accumulation zones can becomes distribution/Re-distribution zones over a period in the Stock Market
• The narrower a supply/demand zone before a strong breakout is, the better the chances for a good reaction the next time typically.
• Good supply and demand zones are quite narrow and do not hold too long, which shows strong imbalance between buyers and sellers.
• The stronger the breakout, the better the demand zone and the more open interest will usually still exist.
• Always look for extremely strong turning points. They are often high probability price levels.
• Each time the price re-tests a supply/demand zone, more and more previously unfilled orders are filled and the level is continually weakened.
Conclusions
Supply and Demand Zones are a great way to identify areas of buying and selling as well as support and resistance, but they work best when combined with other kinds of technical analysis.
TWT – distribution phase!Hello, everyone!
Last time we considered the Bitcoin price analysis and assumed that we will see the price growth soon. According to this I found very interesting pattern for TWT.
TWT price now is forming the classical distribution phase. We saw all Wyckoff events on the chart. Now it is important to decide, if the price is going to form UTAD phase – the massive growth above the ATH before the downward movement, or not? I have 2 evidences that it is going to happen. The first one is our Bitcoin price analysis, if we assume the last altseason in this bull run, TWT price can easily reach the $1.80 before the correction.
The second one evidence is the divergence between the Money Flow Index modified for the blockchain assets, which shows the whales purchases. We can see that despite the price is falling, MFI demonstrates higher lows.
I don’t want to tell you that you should buy TWT right now, I just think that we should take profit from this coin with the further price increase to earn more money. This is actual for you if you bought TWT in the green zone on the MFI, when the institutional investors did it. You can also try the short term trade but you need to define the proper stop loss level according to price target $1.6 – $1.8. Investing in this crypto now is too risky because of bad risk to reward, it is obvious that whales are selling to you TWT on this distribution.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Falling KnifeUnfortunately breakout scenario failed and our most important level 58k was lost. If we can't reclaim it by the monthly close, i expect further down side and mark down of the distribution range to complete.
First strong support is below fib. 0.5(48.900) 47.500 / 47.600
Second and stronger support is at 43.160 weekly level between fib. 0.618 & 0.66 also near monthly support at 48.384
In case a Black Swan type action occurs, 36.964 is where the previous distribution POC is.
When this down trend comes to an end, we will probably be looking at a head and shoulders pattern with the right shoulder in the making.
To the upside, as i said 58k should be reclaimed and green stop buy line must be crossed.
Not much to say for now, there's no need to try catching the falling knife, so let's put the stop buy alerts and see how it unfolds.
If you enter any long positions, use a tight stop loss.
Last ExitHi all,
After a perfect call of the top, here's the last chance to exit.
We have bounced off of 56.766 and a new micro distribution comes in to play. We have completed the SOW and heading towards UTAD around the POC. This is the last chance to exit before mark down.
Trade safe and use a stop loss.
PS. Yes wyckoff applies to all timeframes, including 5 min :)
Distribution After BounceHi all,
We are about to complete the distribution after bouncing from 55.600. This is the micro version of the bigger distribution i shared in my previous posts. Curently UTAD in the making. I expect a dump towards 58.300 where the stopping action will occur with a bounce followed by second dip at 57.900 (point of control) of distribution range.
Trade safe and use a stop loss.
Bitcoin - consolidation for this weekend (symmetrical triangle)Bitcoin - consolidation for this weekend (symmetrical triangle).
Bitcoin has dropped below the SOW level. According to the distribution scheme of the Wyckoff, we have the LPSY level. As the price usually consolidates on weekends, I predict a certain formation. Moreover, there is no recovery from the recent declines.
At 1h, you can also see that there is a divergence, which also indicates the need to rebound the declines.
BTC Warning !!!! Possible Wyckoff Distribution BTC is currently forming a Wyckoff distribution pattern similar to Jan 2021 - Aug 2021 (The blue shaded pattern is a copy of the previous pattern for comparison). Please be mindful the timeline not going to be accurate.
In another scenario, BTC will dump to 52-54k then pump as we expected. If BTC makes a HH and then HL, we should expect a massive dump where the accumulation will begin.
This is not financial advice, please DYOR, and I'm going to pray that I'm wrong and this doesn't happen
BITCOIN: The Worst Scenario!This presentation is for informational and educational purposes only; it should not be construed as investment advice of any kind.
According to the daily chart , BTC still fighting for the level of $60K which may lead to reach to $75K all time high (according to the calculation of the target point using P&G for the last accumulation); and we may see a distribution in the market after that..
It could rebound at the $50K level and the price return above $65K so this chart will be invalidated; or it continue down to the next support which can be considered as a value zone to start accumulating again.
Also, the fear and greed index shows greed in the market which indicates some major correction pending.
Remember: Market is still uptrend, so the scenario will be canceled if the price makes a move towards $85K and breakout!
This could be the worst possible scenario so the rest is all good :)