#RBR RALLY HOW TO#
#RBR RALLY PDF#

Unlike RBR/DBD zones, they always form after a move in the opposite direction, which gives the banks lots of orders to place trades and take profits with. This isnвЂ™t the case for rally-base-drop/drop-base-rally zones. If not many people are doing that, as is the case for rally-base rally/drop-base-drop zones, they canвЂ™t take much profit off nor place big trades, resulting in a weak zone. They need people to be doing the opposite to what they want to do вЂ“ buying if they want to sell, selling if they want to buy вЂ“ to place trades or take profits. This means the banks donвЂ™t have many orders to use to place trades or take profits with. They always form in the middle of a swing, when lots of people are already placing trades in the same direction. Now, where do rally base rally/drop base drop zones form again?ДЄfter price has already moved in one direction! If price rises and a demand zone forms, most people are already buying, which means the banks only have a small number of sell orders to use to place buy trades/take profits with вЂ“ remember they need opposing orders to buy or sell buy orders if they want to sell, sell orders if they want to buy. The key point I make is if a zone forms after a move in the opposite direction, itвЂ™s much stronger than a zone that forms after a move in the same direction. The logic is the move preceding the zone gives you an idea of how many people were buying or selling at the time, and thus, how many orders the banks had to place trades or take profits with to cause the zone to form.

#RBR RALLY HOW TO#

In my supply and demand book, I explain how to gauge the strength of a zone by looking at the move that preceded it. If lots of orders are coming in, the banks can take a lot of profits or place big trades, which makes the zone stronger and more likely to cause a reversal. What this means is the strength of a zone is actually based on how many orders were coming into the market at the time the banks wanted to take profits or place trades. For example, if they placed a big trade, the zone has a high chance of causing price to reverse, as they wonвЂ™t want it to breakthrough because it may make them lose. Whether a zone causes a reversal or not depends on the number of profits the banks took off or the size of the trades they placed. The banks place their trades or take profits, and price moves away, creating the zone.Д«ut hereвЂ™s the important point to rememberвЂ¦ Rally-base-rally/drop-base-drop zones form from the banks either placing trades or taking profits, just like rally-base-drop/drop-base-rally zones. The reason why comes down to how they formвЂ¦ RBR DBD zones, even though they appear the same as RBD/DBR zones, have a much lower probability of causing reversals. They both look the same, you trade them in the same way, and they even form under the same process the banks placing trades or taking profits. On the surface, RBR/DBD zones seem no different to RBD/DBR zones. The Problem With Rally Base Rally/Drop Base Drop Zones This plays a large part in why the zones tend to work better than RBR/DBD zones, as youвЂ™ll now seeвЂ¦ The zones form from a move in one direction, then a base, followed by a move in the counter direction, which creates the zone. Rally-base-drop/drop-base-rally zones have the same appearance as RBR/DBD zones, but rather than form in the middle of a swing they create the swing itself. TheyвЂ™re the ones you get taught to trade, and that get talked about by all the gurus. These are the zones youвЂ™re probably most familiar with. On the other side of the fence, we have rally-base-drop/drop-base-rally zones or the normal type of supply and demand zones. This doesnвЂ™t sound like a big deal, but youвЂ™ll see later why itвЂ™s actually one of the main reasons the zones donвЂ™t work that well. The key difference, however, is rather than create a new swing like RBD/DBR zones do, they form after itвЂ™s already underway, typically somewhere in the middle. Looks-wise, RBR/DBD zones look the same as RBD/DBR zones. And always cause a continuation of the movement preceding the zone, rather than a reversal like we see with rally-base-drop/drop-base-rally zones. They get their name from the way they form: from a move in one direction, followed by a base (a small consolidation), followed by another move in the same direction. Rally-base-rally/drop-base-drop zones (or RBR/DBR for short) are the lessen known, and IвЂ™d say more uncommon type of supply and demand zone.

#RBR RALLY PDF#

Free PDF: Download This Post As A PDF To Read Later - Includes S & D Rules PDF Rally-Base-Rally/Drop-Base-Drop ZonesД®ver seen a supply or demand zone form in the middle of a swing, rather than at the beginning? Well, youвЂ™ve just found a rally-base-rally or drop-base-drop zone.

Rbr rally