Really enjoyed this ebook referenced above… thank you.
I really hope, someday, I am able to describe what is going on on a chart like you did on pages 43-44. Can you recommend additional reading material that would improve my understanding of charts, candle by candle ?
I am learning to trade supply / demand zones. Couldn’t help look at charts on pages 36 & 42, and asking myself: Ok given the 24 hour rule for zones in H1 charts, where do I place my entry ???
It appears unless price returned to zones where large institutions, such as on page 36, place their buy trades within 24 hours of the large move up, I would have missed the trade.
I assume its being able to recognize a retracement, being able to gauge how strong the retracement will be ( pause or trend reversal ) and then find a strong plausible zone nearby to catch the retracement as it turns back toward trend or proceeds with trend reversal ???
How on earth do I do that ???? lol What frustrates my trading is being able to gauge the strength of an impulse/retracement or of S/D Zone. Felt I need to be able to understand chart development, candle by candle to be able to accomplish this. This ebook showed me that it is possible to do so.
I have purchased other ebooks from you:
How to determine when a reversal is going to take place; and
What causes consolidations and retracements to form.
I think this book will help my understanding of these other books better.
Any advise on the above questions is greatly appreciated.
Once again, thank you for taking the time to produce all the material that you have, especially the e-books, in order to help improve other people’s trading.
Regards…
My Response:
For learning resources, I stand by my books and the articles on my site as your best bet.
While there are some good books out there on candlesticks, their usual definitions can often cause confusion…
My main advice?
Focus on candlesticks with large wicks.
These are formed when bank traders either place trades or take profits off trades. As you analyze charts, ask yourself… what might have caused the wick to form?
For instance, if price is trending lower and you spot a bearish candle with a large lower wick (it doesn’t have to be a bullish pin bar), it could signal the bank traders have just placed a significant number of buy trades or taken substantial profits off open sell trades.
The 24-hour rule isn’t an absolute one…
Certain zones, based on their formation in the market, are still viable for trade after 24 hours. Explaining why certain zones function beyond the 24-hour limit is quite complex as it differs per zone. However, my weekly analysis will highlight those zones suitable for trading beyond 24 hours.
As for trade entry at a supply or demand zone, place your entry order at the bottom or top edge of the zone—bottom for a supply zone, top for a demand zone.
In my experience, if a retracement composed of large candlesticks propels price back towards a supply or demand zone, it indicates the zone may not cause a reversal.
For example:
If I observed a move like this pushing the price back towards a supply (or demand) zone, I wouldn’t go short at the zone.
Hope these pointers help…
PAN.