The longer the consolidation the more orders they are able to stack
What the direction of the daily or 4h is, thats going to be the direction of the move outside the consolidation most often. So if price moves above the consolidation and price bearish thats usually going to be the best scenario for trading outside the consolidation
Expect price to reprice to the EQ of the consolidation once we snap out of it
Short term high above EQ
Watching for the 2nd time:
Focus on the daily and or 4h orderflow, is it likely to go higher or lower on the daily. The 4h chart is your last line of defense in terms of determining directional bias, preferably you want to trade with 4h and daily aligned
The consolidation we look for will be on 1h timeframe or 15m
Open float is the building up of ordeers above and below the current market price
‘The longer the consolidation the more orders theyre building up
Whatever the direction of the daily and or 4h is thats going to be the move outside of the consolidation most often. So if price moves above the consolidation and price bearish thats usually going to be the best scenario for trading in the consolidation
When we move away from EQ and break a short term high then thats our sell scenario
We do not always hold to the opposite end of the consolidation, we aim for the EQ of the consolidation unless we buy/sell the expansion then we do aim for the opposite end of the consolidation because we buy/sell inside the consolidation
We wait for price to take out the high/low before we sell/buy, retail will expect it to hold, we dont
For directional bias: Are we respecting a daily PD array and are we reaching for an opposite PD array