Premium and a monthly imbalance — target at the range low
A random 2019 bar on the British pound against the Swiss franc, daily chart. The trend from the two latest trading ranges is down; on a bigger scale the priority is with sellers. Price is in the premium of the daily range and interacts with a monthly imbalance that gives a most traded volume zone on the weekly. The target is the low of the daily range. Point A 1.33113, point B 1.165785; the idea is alive while price holds below the weekly zone. The indicator showed strong untested order flows at the imbalance and a reaction with hourly and weekly descending imbalances. In March 2020 price went below point B — the target was hit.
Watch the breakdown
We take a random bar in history, define the narrative, and read the market live — no scripts, just structure and facts.
Step by step
1. First the trend — from the two latest trading ranges
2. On a bigger scale, the priority is with sellers
3. Liquidity in the premium — a monthly imbalance
4. Weekly confirmation — a most traded volume zone
5. Three questions: where is price, what it interacts with, where it heads
6. The idea is alive while price holds below the weekly zone
7. Indicator: strong untested order flows at the imbalance
8. Reaction: hourly and weekly descending imbalances
9. Plan worked out — target reached
The order of the walkthrough
The trend is read from the two latest trading ranges; on a bigger scale the priority is with sellers.
Liquidity is looked for in the premium: a monthly imbalance, confirmed by a weekly most traded volume zone; the working chart stays daily.
Three questions are asked before the entry: where price is, what it interacts with, where it heads — and where points A and B are.
The invalidation is named in advance: the idea is alive while price holds below the weekly zone.
The indicator comes in after the manual markup. Here it showed strong untested order flows at the imbalance and a reaction with hourly and weekly descending imbalances.
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