5. RBD

RBD is Rally Base Drop.
The price goes up (Rally), then forms a base and then drops down (Drop) from the base. Then comes back to the base again and goes further down.

In the image above we can clearly see how we can determine where we can find a RBD area. I always make the base on an indecision candle. If I don’t see it on the time frame where I am at that moment, I switch a time frame higher or lower where we can often find it.

Then we go back to the line chart to create a nice line to find the strongest point in the base. The point where he will usually also rejects and go up again.

On this image we can clearly see how you could trade the RBD. But never forget the general rules of Supply and Demand. (Strong Base? Weak Base etc.)

Homework assignment:

The homework for this time. Send in 2 examples of the charts with a clear RBD drawn.

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