<aside> <img src="/icons/reorder_gray.svg" alt="/icons/reorder_gray.svg" width="40px" /> In this Review we will look at the efficiency of price delivery. Paint roller & grass cutting analogy. We will look how price is efficiently delivered into Balanced areas between 2 price ranges. Learning how to trust that our PD arrays will hold. /MSS / Reclaimed FVG
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We can draw Fib projections using that Low as Fulcrum point and that’s how we that -1 SD. Just because we draw that, it doesn’t mean it will go there, obviously.
Sometimes you would want to open a small position of 1 contract just to get a feel of the market. You can do it on a demo. Sometimes the AM can be indecisive.
A FVG doesn’t always mean a buy. Sometimes we would want to see it come down through it and act as Resistance.
This is how we tape read and measure OF. Order flow is how we read price moving from one level to another.
If prices violates 3 PD arrays then we probably are not onside anymore. If we have a SL higher and we see PD arrays fail to keep price lower, we can close the trade before it hits the SL.
Closing the trade because it doesn’t deliver anymore as we would want it to, will serve us better than trying to extract the maximum and hold for full TP.
Why do we look at that remaining portion of the FVG?
Look at the SIBI and think about the paint roller. It applies paint. That little area is like a pocket where the paint was not really thick. It wasn’t evenly distributed on the “wall”. Normally when you first apply the roller to the wall is really thick, its delivered abundantly to the wall. But once it starts moving away from that, eventually there will be small pores, pockets, that the paint did not deliver correctly. You would have those spots on your wall.
In an ideal world, the painter will put more pain on his roller and will go back and put in those areas where it hasn’t delivered enough paint. And then he will continue painting further. So we are looking for the areas where its needed that the market comes back and replenish the paint. If we have a level that we think, price will run through, the painter has to paint all the way till there to get the job done. But it has to be done efficiently.
Where ever the painter starts painting that’s the point of inception. In the beginning the paint is properly applied, there is no pockets or pores. But as he continue further, at some point the paint will stop coming out of the roller. So he rolls right back up, collects the excessive amounts of paint that’s not necessary to be in that area and he distributes it the areas that don’t have enough of paint.
