AMD - Chart Link- the Supply Zone that I posted
today on AMD formed previously as a result of a break in structure
(price broke below a previous low after uptrend). As a
result, this creates a valid supply zone at that point as
illustrated (I draw the zone based upon the doji candle above).
I also posted the price levels prior to posting the chart as
it's not easy to determine as the chart is not a zoomed in view.
Such zones are where institutions tend to act - the INITIAL
test of such zones are highly effective in producing a reaction.
This is simply one example.
Another clue here was the break in symmetry (not spotted by some
buyers who may have gotten surprised by the reversal) that
suggested to watch for a lower high to be formed on a bounce - then
you identify the bounce zone as I did above. Arun posted a
valid a wedge for a trade long (kudos) - I simply pointed out where
sellers would likely materialize if price reached that zone.
This is a powerful tool to implement into your trading to identify
such zones. Understand that the initial test is likely to
produce the strongest reaction as subsequent tests weaken the
zone.
Posted by anjali25 on 14th of Jul 2023 at 05:48 pm
Thanks for sharing this Steve - my trading has improved
considerably in the past year I joined you guys 🥰
Couple of clarifications
1. Was your supply zone due to the 2 doji with tails and
then strong red candle on 3s candle slicing through support - can
You pls elaborate what you mean by “
price broke below a previous low after uptrend” - have been
trying to understand this concept so really appreciate the
clarification
2. When you refer to the break of symmetry - were you referring
to move from 132 to 107 ie $25 more than any of the others …
based on this it seems that SMH May see a stronger pullback next
week in C wave … so may be prudent to take some profits …
The supply zone was created with a break in structure as
illustrated. Simple as that as a previous low breached. Please
review again and I will post a zoomed in chart over the
weekend.
Nice post. Detailed and clear. I will admit I very
often do not understand your short cryptic posts, that many here
probably understand. I'm a trader since college (40+ years)
but, not a professional market-pit sort of guy. I also don't
pick up on sarcasm. Just me, but I don't want to try and
process jokes during open trading. I consider trading
survival in the jungle... no time for criptic or jokes. Just
me.
Thanks again, have a nice evening.
Auni
p.s. I make $$$ on the BPT set-ups you guys post, more
than
anythinghere by far! It is just always so hard
to take them.
It is the do, not the think. - Yoda
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AMD Discussion on Supply Zone - For AUNI
Posted by steve on 14th of Jul 2023 at 04:43 pm
AMD - Chart Link- the Supply Zone that I posted today on AMD formed previously as a result of a break in structure (price broke below a previous low after uptrend). As a result, this creates a valid supply zone at that point as illustrated (I draw the zone based upon the doji candle above). I also posted the price levels prior to posting the chart as it's not easy to determine as the chart is not a zoomed in view. Such zones are where institutions tend to act - the INITIAL test of such zones are highly effective in producing a reaction.
This is simply one example.
Another clue here was the break in symmetry (not spotted by some buyers who may have gotten surprised by the reversal) that suggested to watch for a lower high to be formed on a bounce - then you identify the bounce zone as I did above. Arun posted a valid a wedge for a trade long (kudos) - I simply pointed out where sellers would likely materialize if price reached that zone. This is a powerful tool to implement into your trading to identify such zones. Understand that the initial test is likely to produce the strongest reaction as subsequent tests weaken the zone.
Thanks for sharing this Steve
Posted by anjali25 on 14th of Jul 2023 at 05:48 pm
Thanks for sharing this Steve - my trading has improved considerably in the past year I joined you guys 🥰
Couple of clarifications
1. Was your supply zone due to the 2 doji with tails and then strong red candle on 3s candle slicing through support - can You pls elaborate what you mean by “ price broke below a previous low after uptrend” - have been trying to understand this concept so really appreciate the clarification
2. When you refer to the break of symmetry - were you referring to move from 132 to 107 ie $25 more than any of the others …
based on this it seems that SMH May see a stronger pullback next week in C wave … so may be prudent to take some profits …
The supply zone was created
Posted by steve on 15th of Jul 2023 at 07:50 am
The supply zone was created with a break in structure as illustrated. Simple as that as a previous low breached. Please review again and I will post a zoomed in chart over the weekend.
Thanks for this post. Nice post.
Posted by auni on 14th of Jul 2023 at 05:17 pm
Thanks for this post.
Nice post. Detailed and clear. I will admit I very often do not understand your short cryptic posts, that many here probably understand. I'm a trader since college (40+ years) but, not a professional market-pit sort of guy. I also don't pick up on sarcasm. Just me, but I don't want to try and process jokes during open trading. I consider trading survival in the jungle... no time for criptic or jokes. Just me.
Thanks again, have a nice evening.
Auni
p.s. I make $$$ on the BPT set-ups you guys post, more than anythinghere by far! It is just always so hard to take them.
It is the do, not the think. - Yoda