Page 26 - Module 5 - Key_Players_in_the_financial_game

Module 5 – Understanding the game between the bulls and bears

fresh levels vs original levels
Supply and demand levels can be:

 Fresh. Price has not pulled back yet, untested level
 Non-fresh. Price has pulled back to it at least once
 Used up. Price has pulled back to level several times, not good for trading
 Original. Level has been created out of the blue, not being a reaction to any previous level
 Original and fresh. Same as original, but it's also fresh (untested)

How do we know if we have an original level of supply? (opposite for original
levels of demand)

Start looking on the left of the chart to find original levels. Draw a horizontal line at the distal line,
and scroll your charts until you bump into a candlestick

If that candle is part of another supply level, then the supply level you were looking at was not original
You are not allowed to cut through candles, that is, once you look left by drawing the horizontal line
and the line meets a candle, you stop and decide if it's a reaction to a previous supply level

To know if a level is original you need to look to the left, at the origin of the level.

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