Climbing from Primary Supply to Upper Supply: wait for breakot

20 Okt 2023

Presently, the price is being held in check by the primary supply located on the left, effectively absorbing all the sell orders associated with it. Beyond this supply zone, there is a stretch of price compression extending up to the uppermost supply level. Consequently, if the price manages to break free from the current supply, it is highly likely that we'll observe a continued ascent towards the second supply at the pinnacle, spanning approximately 200 pips between these two supply levels. Should the price successfully breach the current supply, it would serve as a compelling reason to seek out a setup for a long position. This setup could materialize as a newly formed and robust demand zone that triggers the breakout. The target for this long position would be the supply at the top.