Weekly commentary 5 Flashcards
Does price behave differently on the different timeframes?
The algorithm only does 2 things. It rebalances areas of imbalance, and delivers liquidity. Price delivery might look different on different timeframes because of all the data the algorithm consumes, but it essentially does the same thing consistently on all timeframes.
What should be noted about news event on Tuesdays?
If there is a significant news event on a Tuesday, you can expect a raid on Monday’s liquidity.
What should be noted about news event on Wednesdays?
A news event on a Wednesday can be used as a catalyst to drive price to the intended direction for the weekly close.
When can we expect the low of the week to form when the bias for the week is bearish?
If the week is bearish, the low of the week will most likely be created on a Thursday.
Is there generally significant price action on a Friday?
On a Friday, price typically trends to trade within the weekly range.
Does price always need to react off of an order block?
No. Liquidity trumps order blocks. Price can raid liquidity without an order block existing.
Why is higher timeframe analysis important?
Higher timeframe analysis is critical as it provides hindsight and context ito where price came from, and where price is going.
It also helps you form an educated on price bias by blending analysis on all the timeframes.
What’s the main reason for identifying discount and premium zones?
It shows where risk to reward is more favorable so that we can buy when price is at a discount, and sell when price is at a premium.
How should you use premium and discount zones?
The premium zone is mostly used when price is bearish.
To identify the the premium zone in a bearish trend you have draw the fic from swing high to swing low.
How should you use discount zones?
The discount zone is use when price is bulllish. To identify the premium zone in bearish trend you have to draw the fibonacci retracement tool from Swing Low to Swing High. The area below the 50% fib retracement level is the discount zone where you will look for buys after confirmation like a Market Structure Shift .
