What are the OBSTACLES to Price Action Movements?

What are the OBSTACLES to Price Action Movements?

Price does not move in straight lines. So when we draw the zones, we need to remember this. We would have drawn a demand/supply zone and will be waiting at those zones for taking entry. But there are many obstacles price can come across on its way to our entry. When one of these obstacles is reached, price usually does not retrace to our entry.

These obstacles are:

·         HTF imbalance in control

·         HTF trending trendline confluence

·         HTF sloping 20 EMA confluence

Many times price will fall short of retracing to our entries due to one of these obstacles. It’s at these confluences that we will be waiting for new imbalances to be formed to continue trading in the same bigger picture direction by taking counter-trend based trades.

Examples:

Whenever price touched a demand or supply zone in HTF, expect strong reactions in LTF

Whenever price touches trendline in HTF, expect strong reactions in LTF:

Whenever price touches 20 EMA in HTF, expect strong reactions in LTF:

But as a beginner, you should not take these counter-trend trades, you should only be trading with a clear trend. Focus on clear trending scenarios and great imbalances. I know you will break that rule, just remember that all the effort you are spending here is going waste when you break the rules and have losses after losses taking counter-trend or unclear scenarios. Work on your patience and wait, otherwise you will be blowing up your account very fast.

Go through this over and over. If you understand the concepts so far, you will have the foundations of the strategy, these foundations will help you tremendously in the forthcoming lessons.

The realignment is one of the most important core concepts you need to understand, never forget about them, DO NOT ignore this concept,  without it, rules will not work.

For more details and examples, checkout the video: