This idea is based on my understanding of order flow.
A significant drop allowed me to define a supply zone where open sell orders are left over (red zone). After the drop, the price has recovered in a compression zone (Green zone). The compression zone ensures that in this area, where the price is slowly rising, the buy orders are "eaten up" piece by piece....
This idea is based on my understanding of price action
In the red zone are some unfilled sell orders placed. Probably we will see a pullback from that zone. We are looking for a short entry if price reaches the bottom line of the zone. Our SL will be above the upper zone line. If we get an entry, our target will be the yellow line.
The yellow line marks the...
