WHAT IS A LOADING ZONE MODEL? WHY IS A LOAD REGION MODEL?

Listen to the name, you have understood what this model represents, right? It is true that it shows the anxiety of the crowd when it feels like they have jumped into the market at the wrong time and against the trend.

Anxiety zone occurs when there is a signal of a reversal in a very stable trend, and the small crowd intends to trade in the opposite direction of the trend but the price does not go as expected. squirming around in an area, that area is called the anxiety zone. And our task is to find that anxiety zone pattern on the stock price chart.

How to define a wild area?

In principle, the market must first have a specific trend, or a clear uptrend, or a downtrend.

Secondly, the price suddenly appears a reversal signal (reversal signal appears), these signals are usually the ones learned in the previous articles (fluctuation breakout pattern, trend candlestick failure, descending, ...)

Based on this principle, we will take two steps to define the anxiety zone and trade with this pattern.
  1. In an uptrend, look for a bearish reversal pattern (pattern breakout of the trend zone, trend candle fails, descending, ...)
  2. When these models officially take effect (ensuring the correct rule), the top and bottom of the signal candle will be a worry zone.
Here is an example:
During an uptrend, an ascending pattern appears at the top, giving bearish signals. Immediately, the price went down and executed when the first red candle was penetrated.

The red candle is now a worry zone.

We will place a BUY / LONG order when:
  • The trend is bullish
  • There is a candle that makes up a large part of the anxiety zone
We will place a SELL / SHORT order when:
  • The trend is decreasing
  • There is a candle that makes up a large part of the anxiety zone
Here is an example: