DCHESSKING(THE MONEY GENIUS)
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Catch me on Classic FM 97.3 at 9:30 am today. Letās discuss algorithms (Zedabot) and diversification
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If youāre used to buy and sell signals, thatās not how we operate here..unless we can explain the why.
Sharing a market view without understanding the reasoning behind it just doesnāt make sense.
If so, expect more upside movement.
But if the proximity ratio is 1:2 or greater and we find confluence showing weak buyers, thatās when we jump in for the sell. At this point, the impulsive move turns aggressive, in line with the overall bearish trend.
Those caught at the wrong time will feel it right in the faceā¦why not, right?
Even when price reaches the next supply, we still need to use the same approach to confirm the validity of that zone. Otherwise, if price breaks 1.0873, we could be looking at a further bullish move.
We have to check the next possible baseās proximity when price drives to the next supply zone. Itās a simple yet powerful method that keeps you safe from traps.
Hereās the thing- you donāt just click āsellā at any supply zone just because thereās a rejection or pin bar there.
You need to understand whatās driving that bullish move. Are there buyers eager to buy at a zone close to the supply?
So, whatās my plan?
Iām aiming for the overall bearish trend
..Iām in for selling, but not above the possible base zone.
Iāll only sell if it breaks below the possible base or breaks the current supply zone
From there, weāll watch price drive to the next supply and hook a selling opportunity.
As I always say, timing is everything. Donāt let the market get the best of you!
Both traders identify a selling opportunity, but with different timing.
Possible base traders avoid the trap and wait for the right moment, while others might be doing the right thing but at the wrong time
So, what happened?
WHAT OTHER TRADERS SEE
Other traders observe an overall bearish market and find it tempting to sell from the H1 supply zone at 1.0822, especially after seeing the Doji formed at the supply on EURUSD today.
What possible base traders see:
Possible base traders recognize that selling at 1.0822 is a trap. Why?
Because thereās a possible zone at 1.0815..a potential demand zone thatās too close to the supply. So, despite the overall bearish trend, itās risky to sell at that level until the possible base zone is broken.
Otherwise, thereās a strong likelihood of price heading to 1.0859 before any downturn
Sellers stops are being taken out already.
Why?
I thought they had a nice Doji at the top hahaha
Tell them..we aināt selling until that possible base gets broken! Otherwise, they better wear a seatbelt, because itās going to be a flight to 1.0859!
Tell them..we aināt selling until that possible base gets broken! Otherwise, they better wear an seatbelt, because itās going to be a flight to 1.0859!
Timing is everything in the market..donāt make the mistake of selling at the wrong moment!
If you sold at 1.0823, youāre in dangerous territory.
Why? Because the possible base (potential demand) is too close to the supply zone.
We need that base to be cleared before committing to any sell; otherwise, you risk getting trapped, with a potential retracement to 1.0858 before any real downturn
I know many of you had a sell bias because of that Doji candle within the supply zone. I get itā¦
But take a closer lookā¦have you wondered why the momentum is struggling?
First, weāre in an overall downtrend, but the intraday trend is showing pre-bullish signs, suggesting a possible retracement to 1.0858
If the possible base doesnāt get broken, this is exactly what youāll see. Now, Iām no designer, but I love drawing the market to fit my analysis. Hahaha!
So, letās break it down: if the possible base holds due to the buying pressure, it drives the pre-bullish intraday trend forward
The green marks the supply zone, which is our target. But if the price doesnāt break through that red zone, Iām not taking the sell! Weāll see the buyers trapped, and the tank will be against them.
Burn them? Of course, lol!
For that sell to be valid, the possible base must be broken first. Otherwise, itās a straight-up trap. How can you sell from a supply zone when thereās a potential demand sitting closer to it? Make it make sense!
As tempting as this sell bias might be, itās just a trap hinting that youāre not in the clear yet! Thereās a pending orders stuck in the possible base zone marked in RED
