RaysJourney replies to: C-12’s Supply, Demand and PA thread


{quote} It’s basically making some sort of drop, base, drop while the bear candle at the 2nd drop engulfs. Would that be correct? And if it engulfs, what would you like to see engulfed? Just the one previous candles body? Does it have to engulf in one straight candle? But the explanations make it much clearer!

Notice both bullish looking candles gets engulfed to the downside in this case. I’ll take them as continuation entries as a single candle (higher TF the better) as the PA forms.

I pay close attention to the P4L Candletime indicator as I want to get in towards the candle close as confirmation to prevent whipsaw.

The good news is the market is telling you which direction it wants to go. You’re not fighting price but going with the flow. Just be aware of opposing zones.

These take a lot of practice and not something you’ll see in the trading books.

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