Why Should The Base Be Tight/Compressed For Better Results? (BLOG FAQ)

Hey, 

Great homepage you got.

Question: Why should be a “Base” of a Supply and Demand zone compressed/tight  for better results? 

Thanks =) 

Response:

Honestly, zones with tight bases don’t always lead to more successful trades…

It largely depends on where the zone has formed in the market.

For example: If the market was trending downward, and a demand zone formed, there’s a higher likelihood of that zone being successful than a zone with a tight base. Why?

The banks, of course.

The size of the buy trades the banks executed to create the demand zone would have been significantly larger than those placed to create a zone with a tight base.

Make sense now?

Enjoy the rest of your week.

PAN.