6. DBR

The Supply and demand zones can be Drawn based on the DBR Drop Base Rally.
The price drops down then forms a base and from the base the price goes up again. Then the price comes back down to the base and then rises again.

In the image above we can clearly see how we can determine where we can find a DBR 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 DBR. 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 DBR drawn.

error: Content is protected !!