Friends, some of you may be unfamiliar with and confused by certain terms that I might use in my posts regarding chart analysis. Therefore, I made a small glossary for you; as new analyses come out and new terms appear, I will provide their explanations.
1️⃣ Imbalance — the price void between the first and third candles, filled by the second candle. An imbalance is considered covered when subsequent candles enter its zone. There is full coverage and 50% coverage, after which a price reversal follows. It acts as a magnet.
2️⃣ Liquidity Pool — a large sum of money. It is defined by stop-loss orders on long or short positions.
3️⃣ Bear Fight — an overflow of the market with sell orders to drive down the price. Graphically, it is usually represented by a small candle body and a long upper shadow.
4️⃣ Order Block — an area where large players accumulated positions, graphically represented by a small candle followed by an aggressive-impulsive candle.
So, how do you find it, is it clearer now?))🔥
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