Forex trading supply and demand with in and out Compression
Forex Trading is just about showing patience to market movements. While you still need to push your mind beyond expectation and never ever target anything prior to actions. Strong movements followed by recoveries and then usually people got trapped with fundamentals and deteriorating market assumptions.
In between there are something happens on the chart & that is what I love about Forex trading with supply and demand. Reason being, never ever assume the next move. Movement should be supportive the price Action & hence should be controlled with Good Risk to Reward. Always take a trade which you can control and has a good logic behind certain movements and targets.
Price usually leave zones to get to another decision points and it won’t stop until it gets to its target & following S&p chart is a good example of Institutional and banks movements which is called strong movements followed by recoveries.
First of all, you need to confirm that there is a swap base with current trend change and that area must have been tested and past or history should be aggressive and attempt to Engulf or broke should be strong and once that happen price should leave that zone again with some strong movements but never manage to engulf or test that area .
Once price leave that zone with HH & HL’s, then we should target the attempt to that zone with authority & that chart should compressing into the zone with a steep falling trendline and order get picked once price leave such zones market with blue rectangles. I was enjoying the risk reward to 2970 zone and I fetch more than 40 times of my Risk & that is What I always love about playing a waiting game and that is never away with 10 to 20 pips stops and strong targets are really achievable once you know the ‘Decision points in Trading’
Price often move from one Decision point to another decision point. Decision point could be engulf of zone or clean break of zone and test with three drives or stacked or in & out compression. I would cover this topic in detail once I get time or with more Live trade examples.
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