HI everyone. I know, its been a while. I was lurking into my charts today just for fun. Found an easy Supply level on the H1. Though selling might be in a high risk as the price is close to a bottom. EURUSD might rebound for the new year or perhaps not. But getting a squeeze of the last drop might get you something to bring home.
I left a sell limit during Prior NY session. Obvious London traders were selling. Very easy supply level though for day trading on this chart. Very sharp and strong drop suggesting a strong imbalance.
Hence there might be a few volume that has not filled up. SO it corrects it self in order to fill those gap. During the NY session it got filled and bounce sharply back down.
IN the end it end up a good 1: 2 RR. risking 20 pip for a 40 pip.
Why take a trade when the price after the drop did not complete the 1: 2 Profit margin ?
Look on the left, is there any demand ? NONE, because, it has been used up.
Criteria met for a supply level.
- Strong drop
- Very brief imbalance Period ( 3 candles )
- Profit margin was reasonably 1: 2 ( No demand below )
- Larger time frame Location ( near bottom )
- Larger time frame trend ( Bearish )
- Fresh level