what makes a rejection area, rejection of price direction, rejection of sellers by buyers
liquidity has two directions
if i were looking for an investment entry based on this what level would suit best to enter
what level offers best insight about intent?
when price hits the vpoc buyers enter yet price has failed to make new headway, does this tighten or widen the risk
what constitutes "consolidation" as it is not a thing specifically merely a summation after price moves away from
that area of doing business
the more price consolidates the higher the risk to buyers (in this instance), one failed rejection of sellers and prior buyers
have no influence, they are filled, with no new liquidity on the buy side, by slightly more selling than buying, price finds a new
area
that is what creates a gap n go (either direction) the gap does not appear on the chart if merely a handful of players create a print,
however, it is a gap by definition of acceptance, so interpretation of acceptance, or rejection, above or below the "consolidation", is the
decider on exiting, if opposed positionaly waiting for the next series of rejections to build a profile
a small gap n go is good for buyers if that move gets rejected too, a swift pickup by deep pockets, that should allow the trader time to
wait for the next rejection or acceptance based on price and the time taken to rejection that move, if price does not rotate back to the consolidation area that does
not mean pile in on the new direction, it means the trader needs to shift from being directional-only to balancing the risk both ways, the difference between a puke and a break-out, the difference between acceptance or rejection of that move, is a context of it's own, if the trade is based on that context rather than the preference the trader is disposed to then the risk is attenuated
(this does not consider the positive expectancy pov, albeit, attenuating risk itself is a positive expectancy)
the worst sell is the meandering B sell, looks like a bid kicked in but it's merely presents an opportunity to sell that strength
without leaning, institutional sellers especially want price to come to their level which is what creates immeasurable yes/no trade
the bids kick in but it does not reach the level that major seller want, so they must now go down to where price is reaching and begin to distribute lower, they have to accept a lower value
the point is, again, annotating this on a chart and reviewing allows you to see something that you have not seen before, even if it merely
extracts you (by logic) from engaging in the auction, if you find you are getting trapped, you own the logic, you become a witness, you now own the evidence, you now protect with your emotive stance about that logic, the logic becomes your emotive logic even if this shifts you back into a "balanced" state of thought, you yourself are always swinging between these extremes
you have created a live positive expectancy for yourself with this simple step of annotation, you are "better" risk manager
as an example in real time