What is the deal with Blue SL levels. According to Djamal’s instructions, these are generally considered ‘incidental’ whilst the market focuses on the ‘Mid Term’ SL levels. What is the reasoning for this?
So far, I am finding the Blue SL levels very significant. If anyone can be bothered to scan my previous thread showing a EURGBP Short Reframe trade (still working sitting around 1.3 rr currently). The entry for that was literally slap bang on a big flat light Blue Short SL level that appeared on the back of a bunch of high DM short volume.
And then here was this in the EURUSD this afternoon.
Using conventional Technical Analysis:
Trade was framed as a 61.8% retrace buy-in, with the Fib Box being drawn from the pivot that tested and ‘resolved’ a significant Supply & Demand Zone (thin shaded blue box).
Also Consistency between Price and MACD Momentum (Convergence), indicating move up was still ‘strong’.
Finally, the MK-Indicator shows a big cloud of mostly Blue near term Long SL. On the NFP release, there was a big push down, to clear out this Stop Loss Cloud, slightly overshooting into the gap (hitting a minor sized near term Long SL), leaving the next orange mid term long SL tranche untouched.
Seems to me that the blues are definitely not to be ignored. With the overall bias pointing to the upside, both from a conventional technical and MK-Indicator basis, A Rinse of all the Near Terms (using the NFP release as the pretext) provided a clinical long entry here.