S&R is nothing more than a channel that stops for a pause and then breaks out. Its what we do trend follow or trade the volatile breakout avoid the hook and go and maybe find the next trend.
@kate25 it sounds/seems like a such a simple step by step process in hindsight!
There are moments where it is completely crystal clear and then the fog seems to roll in!
I have been spinning charts back a few months or couple of years and then reading them candle by candle using the information you have posted in this thread. Practice, practice, practice.
It seems to be coming together in my head now.
KC
Consider price is falling and we are viewing a down bar. That bar stops going higher as it hit sell orders, if it did not hit sell orders it would have continued higher, At the low price stops as it hit buy orders and stops as it hit buy orders if it did not price would continue down till it found buyers. This is bar theory and with that knowledge we can say the top of our bars are bar supply and the bottom of our bars are bar demand. When price is falling we are breaking bar demand and sparing supply and when price is rising we are breaking bar supply and sparing bar demand
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Im sorry Im borrowing my material i made earlier this week - I realize this is simplistic to the knowledge of many traders. Lets say you were in this short trade and price is going your way, your happy then price turns and now price is climbing - what happened here
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When we have a down move we are not expecting price to close above our nearest down bar, simply because we realize price is breaking bar demand as our down bars carry more sell orders then our up bars with their buy orders. So when price is falling we have greater sell orders then buy orders, if we did not then our move would be advancing. So when we get a bar that closes above our down bar where price is falling we understand immediately we no longer have more sell orders then buy orders - to close above the nearest down bar means we have greater buy orders - ok
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Where we cross above that down bar is order imbalance and it sets up this idea of wehre we had a sell level in red has now flipped to a buy level in green - that green bar that closed above removed all the sell orders - there is no sell orders left at this level - we now have a level of buy orders
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Ill put up another example to the left. When our down bar closed lower then the nearest up bar it removed all the buy orders at that level now all that is left from where we crossed under the buy level is sell orders and the three bars that tagged this area after price broke through confirmed there were only sell orders as they all reacted and moved downwards. In the present example we can see the three bars to the right of our bar that closed above the sell orders - they all tagged our flipped orders and moved up(flipped orders = where we had sell orders have been overlaid with buy orders)
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Hi @kate25 Are you still trading with this method? I was amazed of your strategy and i would like to see more trad ideas from you. Do you have Instagram or something like this?