This is based on the book by Laurentiu - Price action breakdown
As you can see from the daily chart of SunTv , it is in Downtrend with Regular Lower high & Lower Low seen in the chart
So as long as the dow theory is intact , we are looking for the places to sell
An Ideal place to sell will be when you see a confluence
The value area high and the tail at the same price level is a confluence of factors. It gives this price level additional strength
It gives you two reasons to sell the rejection of it. The first one is that price has touched the value area high and there is a good
possibility it will reverse to the control at least.
The second one is that the price level also coincides with the tail that happened earlier which gives it additional resistance.
The sellers will have one extra reason to position their selling orders there, right at the value area high, increasing supply and increasing your chances to have a winning short trade.
As you can see from the daily chart of SunTv , it is in Downtrend with Regular Lower high & Lower Low seen in the chart
So as long as the dow theory is intact , we are looking for the places to sell
An Ideal place to sell will be when you see a confluence
The value area high and the tail at the same price level is a confluence of factors. It gives this price level additional strength
It gives you two reasons to sell the rejection of it. The first one is that price has touched the value area high and there is a good
possibility it will reverse to the control at least.
The second one is that the price level also coincides with the tail that happened earlier which gives it additional resistance.
The sellers will have one extra reason to position their selling orders there, right at the value area high, increasing supply and increasing your chances to have a winning short trade.