Technicals I - Midpoints

When it comes to many of the technicals being used to support your narrative, we refer to midpoints a lot.

There is a clear reasoning behind this, it is simply to help identify how strong a zone or array is. As you have seen with orderblocks as well, we use the MT - Mean Threshold.


Here is a nugget you must understand, which will help you solidify your knowledge and understanding of the market.


You and I, trading via a broker, will forever remain a retail trader. Whether that is trading CFD's, futures, options or spot.


So, the prices we see on our charts are not the actual prices of that which gets cleared through to the actual market.So, knowing this, there is a slight different between pips that we use, and ticks, that the actual market pulls liquidity with.


This is why midpoints are so important, because they give a general idea of where price will either respect of break orderflow. Continuation of momentum.


Let’s see how it looks like below.


See how price has picked up liquidity twice within the midpoints of that displacement, which is because it’s a general area where orders could lie in within the order books.


A range where price will transact, whether that is to accumulate or distribute orders, these are the areas where balancing occurs, and a directional bias is created and formed.


In the case above it shows that bearish momentum is really strong, and that price is ready to expand lower. This is also a clear target for our buy-side momentum, for when price reverses


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