Educational Post about Defining zones : Read the Caption

If you have been led to believe that the prices move depending on the number of buyers and the number of sellers; if the number of buyers is greater than the number of sellers, prices go up, & if the number of sellers is greater than the number of buyers, prices go down. Then you would be wrong...

The number of sellers or buyers is not what moves the price. What if one seller is doing all the selling to thousands of buyers? The price will go down. The answer to our question is that it is the degree of aggression of the buyers or the sellers and the volume of order-flow they submit is what moves the price. That's what creates the imbalance between buyers and sellers. Your goal as a trader is not to try to catch tops and bottoms that would be absolutely crazy. Your goal as a trader is to find suboptimal zones or in other word good deals.

What is a Optimal Zone?

A zone in which price has already a trend defined by a rally or drop. Most of the time it is a breakout and pullback structure close to a very strong supply and demand level. Most important is that:

Buy optimal zones are close to a macro buy zone In other words price is cheap = good deal to buy.
*Sell optimal zones are close to a macro sell zone. In other words price is expensive= good deal to sell.

What is a Sub-optimal Zone?

    Buy sub-optimal zones are close to a macro sell zone In other words price is expensive = bad deal to buy.
    *Sell sub-optimal zones are close to a macro buy zone. In other words price is cheap= bad deal to sell.

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