Drop base drop refers to a supply zone that forms when a price drop is followed by a base region (consolidation), and then another price drop occurs, making a Supply zone. it is also denoted by DBD in supply and demand trading. drop-base-drop.png The supply zone represents the presence of institutio...

XAUUSD was first making 3 drive pattern in a 4D timeframe. The market is attempting to keep the price bullish. However, the breakout of the trendline and then an inside bar show that the market is in the decision phase. Sell below $2471 Target 1 is $2451 Target 2 is $2424 Target 3 is $2380 xauusd 4D...

There is no timeframe limit for finding the compression zone on the candlestick chart. Compression zone works the same for all timeframes, even in 1 minute timeframe. Choosing a timeframe depends on your daily job and your temperament. However, if you are a day trader, then you should choose 15M, 5M...

To identify the compression on the chart, look for the areas from where price keeps on consuming supply/demand zones. compression.PNG Let me give you an example of price-consuming demand zones. Look at the image below; the price was making a higher high trend, but it was also consuming all the dema...

Example 1: Wind filling empty spaces in our environment You must have often seen the wind filling the empty spaces or low air pressure areas. Wind moves from high-pressure areas to low-pressure areas or empty spaces. In the same way, price moves towards the fair value gaps or empty spaces to restor...

A fair value gap acts as a space that the market wants to fill sooner to maintain balance. So, a fair value gap zone is the region that remains valid until price fills that region. So, to draw an FVG zone on the candlestick chart so you can use it for trade analysis, you will have to follow a few st...

To find the fair value gap on the candlestick chart , you can easily follow these practical steps: Look for a big candlestick on the chart with a big body and small upper or lower shadows. It should resemble the shape of a marubozu. Now check the highs and lows of previous and prior candlesticks to ...

A fair Value Gap is an indicator that shows the difference between the current and fair prices of a financial asset in trading. It is also denoted by FVG.  fair-value-gap-explained.jpg There are two types of FVG in trading, depending on the current price of a stock or financial asset. 01. Undervalue...

The fair value gap acts as a magnet 🧲 to pull the prices in the market.  When an overrated FVG forms on the chart, the gap attracts the price downwards until the price fills the gap.  On the other hand, when an Undervalued FVG forms, the gap attracts the price upward until it achieves its fair value...

To find the demand zone on the candlestick chart, you need to understand two price patterns that represents the formation of demand zone on the chart. Rally base rally Drop base rally When these two patterns form on the candlestick chart, then it means that buyers want to buy from the demand zone to...