1. What’s the trouble area? - Prior support levels, or levels where price reacted briefly before dropping further - Volume Nodes during the downtrend (Places where buyers tried to step in on the way down but buy walls got eaten) 2. Liquidity pockets? - Areas where large liquidations took place - Price visited very briefly so never really traded there and thus there is likely not much demand there if we go there again
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Logically Trading Price Action
1. What’s the trouble area?
- Prior support levels, or levels where price reacted briefly before dropping further
- Volume Nodes during the downtrend
(Places where buyers tried to step in on the way down but buy walls got eaten)
2. Liquidity pockets?
- Areas where large liquidations took place
- Price visited very briefly so never really traded there and thus there is likely not much demand there if we go there again