Arrays I - Shift Zones

Shift zones, it'll become a little bit more intricate. So, bear with me.

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Theory

Everything that once was, can become what is.


Shift zones, as in the name, are area's where price sentiment shifts its bias. There is theory behind it. Market making capable firms and investments banks are not always right. They are the ones in the zero- sum game.


Sometimes these players also get it wrong. SO, places where price was previously considered cheap, could become areas where price might be deemed to be expensive. And vice versa.


It's a tad more in-depth than support becoming resistance. it has to do with order flow.


Bullish shift zone looks like this. You see, we are adding weight to these concepts for them to become applicable. Price creates a low, another swing point as a lower high perhaps, and then breaks and runs SSL. Immediately from there we break the previous high... That makes the shift zone valid for the rollover.

A strong rollover, remember what we said. The odds that we retrace the entire low in this case, go through the entire HTA, high resistance is slim. Shift zones are untapped areas where price got rebalanced, hedge- funds that are hedging their positions and entering with the new direction.


Here is a market example;

The principal is still the same, the OB is still a bullish OB before a bearish run.


And vice versa it looks like this;

Just like how we previously created a protected low, we are now creating a protected high.


Same concept. And on charts it looks like this.


Once again, here a bearish shift zone is a bearish candle before bullish run. See how in this case it runs SSL first, creates that OB, which in turn would be the first step of a good rollover, but it fails to create clean structure, it induces a high, grabs liquidity and slices through price.


Note how a shift-zone is always just body to body of an OB candle. Whether that is a bullish candle prior to the bearish trend, or vice versa a bearish candle before the bullish trend, never wicks included.


Key takeaway from a shift zone is the following;

  • - The zone is made up of two opposing price slices.

    • Bearish shift zone always reacts up first, breaking previous structure then slices price with an engulfing candle through the zone, to then retest it and continue trend.

    • Bullish shift zone reacts down first, breaks previous structure then slices with anengulfing candle.

  • - Takes out liquidity on both sides of the market prior to retesting.

Don't worry too much about the specific rules just yet with inducements within the shift zone. (the lines labeled with ---x---) As in the one scenario it's a market shift, and in the other scenario it is simple just an inducement of previous structure.


The validity of a shift zone is just for the first tap. It acts as a new array within the freshly created dealing range.


Sentiment flows. Sentiment shifts. Narrative shifts.