Arrays - Feedback/shiftzones

————-- 004 - Feedback OB

Feedback OB's are basically a term that refers to a consecutive relay of your supply or demand chain. IE -> in simple terms, an extra confirmation that either buyers or sellers are in control. Just like with the expansion and reversals. Don't fuss too much about correct labeling, the concept is what matters the most

Feedback is a double mitigation of your narrative chain.

So if your narrative and bias is short favoring sell side, feedback would mean that two of your supply side orderblocks have been respected consecutively.

Vice versa when you are looking at buy side, it would mean that two OB's have been respected consecutively.

The second one in either case is the feedback ob.

Take a look - Buyside example

The thing that we want to see here is the response, the feedback in essence. Price does come back to the original orderblock, but once it confirms a new higher high it lines up better with the feedback ob. It's a more conservative approach to your entry models.

Let me ask you this. After a protected low, this feedback ob in combination with a MS creates what?

A strong rollover. So you're basically putting the puzzle pieces together of the missing links you had previously, you want strong rollovers if you are trading reversals. And now you have an extra tool in your arsenal.

Sell - side example

Beautiful example, see how we create that up candle before the selloff?

Just like that we create feedback, this then gets relayed into the short side to draw our weak lows, SSL.

It aint rocket science.

————-- 005 -Shift Zones

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.

Let me show you.

Bullish shiftzone 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. shiftzones are untapped areas where price got rebalanced, Hedgefunds 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 shiftzone 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 OB candle. Wether 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 shiftzone 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 an englufing 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 labled 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 just for the first tap. It acts as a new array within the freshly created dealing range.

Sentiment flows. Sentiment shifts. Narrative shifts.

Go over arrays a bit more. All 5 lessons, before continuing to the next topics. You want to be able to identify these within market execution time.