Monthly Imbalances
Weekly Imbalances
Case by case - using probability at the three options we have available to us.
1. sit out and wait for the buying imbalance
2. Sell based upon the rejection of 61.8% and look to add upon the 70.5% rejection
3. Buy at 70.5%, weekly trendline and weekly imbalance.
Bearish scenario
Continued rejection of the "trendline", but instead a continued correctional move from the imbalance at the peak of the move down to the buying imbalance.
See the below screenshot for the possible scenario using probability on the reactive zone.
With the break of the weekly trendline - price will continue to be devalued as the break also coincides with the Fibonacci retracement 0.705
Where price will confirm the rejection will be a break and retest found on the 4, 8hour and daily - this will provide the confirmation. Price will now continue to either swap in the weekly zone.
Note - the most important zone is the monthly - price will look to revert back to this zone and provide a huge opportunity once price has reacted - where the sellers and buyers will close the imbalance and create a buyers market.
Bullish weekly scenario -
[Rejection of the 70.5% Fibonacci and the weekly trendline.
