And one of the tools that reflect the nature of the market is supply-demand because basically, the price movement is caused by the difference between supply and demand. We will use this tool in combination with the price action and Fibonacci that are familiar to everyone.

The first step is to open the h1 chart and start looking for price boom accumulation zones. If you do not understand what this area is, see the picture below:

Once you find those zones, you should see resistance/support appear close to the price boom.

Now it's Fibonacci turn, use this tool to draw from top to bottom of the wave. We notice the zone between 38.2% and 61.8% - that is the area where the pending order will be placed as long as it converges with the price boom we said and a bit of price action confirmation factor. .

It sounds confusing, please see the picture:

So we have two good entry points, 2 options because the two price booms all converge with the 38.2% - 61.8% Fibonacci retracement.

Based on these two factors, we will expect a trend reversal when the price touches these two areas. At that time, we will enter the SELL command.

Now consider the third element - the timing element, which is the price action. Once the price forms a Pinbar, Outside bar, or Two-Bar-Reversal tree in the area where we expect SELL, we will place a SELL order.

Touching the Fibonacci 38.2% - 61.8% for the first time has not met the SELL condition because the price has not touched the price boom before. Price has not formed any candles yet. On the other hand, at the bottom of the wave, there is a pretty solid head-and-shoulder pattern, so the probability of the price going up is higher than turning down. Entering orders in this area is completely detrimental.

Even after touching the explosive price range and creating a reversal candlestick, according to the current market conditions, traders are also limited to entering orders in this case. This part belongs to the experience.

The first area is considered done, not reasonable. But the second area we can consider entering orders with 3 reasons:
  1. Touch the strong supply area
  2. Tap Fibonacci level 61.8%
  3. The pin bar candle indicates that the price has refused to go up in this supply zone.
Based on these 3 factors, we enter the command SELL.

This strategy has the advantage of giving us a very good R: R ratio, 1.5: 1 worst, 3: 1 better (as TP 2 in the picture).

If you still do not understand this strategy, continue to follow the examples below. We will have loss-making examples in addition to bold examples for traders to easily learn from:

RRR 2.5: 1, Eat

RRR 2.5: 1, Lose

RRR 3: 1, Eat

RRR 4: 1, Eat

RRR 3: 1, Eat

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