Hey Guys,
I've been trying to get my head round this RTM stuff for a while but some things still don't make sense to me. I wonder if anyone can help?
I've posted a screenshot from IF's Trick Zone video. While I completely understand the logic behind the trick zone he highlights in the long red box, I'm having real trouble trying to understand why that level is still important after the return at point 1, especially considering how much price action has occurred above and below it in the interim period.
There's 3 major approaches to the level from below (1,2,3). None of them produce a decent sell off. Then of course at point 4 it's a pinpoint wonder trade. There's going to be some kind of engulf in that small red box I drew so you'd think 3 would have had a decent chance of selling off.
Is it a case that I'm mixing up scales here and we really need to wait for his blue box on the daily to be engulfed?
Besides all that, I just find it hard to reason from an order flow point of view why that level is still so relevant given hos many times price has passed back and forth through it.
Thanks in advance
I've been trying to get my head round this RTM stuff for a while but some things still don't make sense to me. I wonder if anyone can help?
I've posted a screenshot from IF's Trick Zone video. While I completely understand the logic behind the trick zone he highlights in the long red box, I'm having real trouble trying to understand why that level is still important after the return at point 1, especially considering how much price action has occurred above and below it in the interim period.
There's 3 major approaches to the level from below (1,2,3). None of them produce a decent sell off. Then of course at point 4 it's a pinpoint wonder trade. There's going to be some kind of engulf in that small red box I drew so you'd think 3 would have had a decent chance of selling off.
Is it a case that I'm mixing up scales here and we really need to wait for his blue box on the daily to be engulfed?
Besides all that, I just find it hard to reason from an order flow point of view why that level is still so relevant given hos many times price has passed back and forth through it.
Thanks in advance