Buying into Supply

Happy New Year!

It's the holiday period, but I've still taken trades when I've seen setups.

Here's one with a prime example of how you can safely buy into a supply level.

We normally look to buy from demand and sell from support but there are certain situations where buying into supply can be done safely. Here's  one:

EJ

Price was at daily supply and a daily channel had been maintained on the way to the level.

H4 and H1 structure remained bullish so an upside breakout was likely.

 

 

After

Price retraced to a H4 support level in the uptrend which held and there was a lower timeframe entry opportunity.

After ranging for a while price finally made the break to the upside.

 

Long time subscribers will notice fibs on the chart which you won't have seen before. I just used it to measure the retracement in the H4 uptrend. Supply and demand, price action and SR are still the core elements.

I hope that was useful.

Any questions, just ask.

Happy Trading