🤷‍♂️ This Concept Changes Your Trading Game

🎩 One of the most important concepts in trading is understanding that all time frames are connected to one another 🔗📊

The lower time frames often give us clues about what the higher time frames are preparing to do.

For example, if we examine $GOOGL on the weekly chart 🗓️ we can see that after institutional 🟩 demand was created, price produced two very strong momentum candles to the upside 📈📈

After those powerful bullish candles formed, price then began slowing down and created a weekly doji candle ⚖️

Now this is where the relationship between the time frames becomes extremely important 🔎

While that weekly doji candle was forming, a 🟩 demand zone was created on the daily timeframe.

📈 Price rallied away from the daily demand zone

📉 Then later dropped back into it

Normally, if institutions still intend for price to continue higher, we would expect that daily 🟩 demand zone to hold and produce another rally higher.

However…

⚠️ We are now seeing a SECOND test of the same daily demand zone.

Why does this matter? 🤔

Because repeated tests of a demand zone can indicate that the institutional buying inside the zone is beginning to weaken 🏦

Think of it this way:

🟩 Demand zones contain buy orders

📉 Every time price returns into the zone, some of those buy orders get consumed

The more times price revisits the zone…

⚠️ The greater the probability that the buying pressure inside that zone is becoming exhausted.

This leads us to a very important conclusion:

📍 If the daily 🟩 demand zone at $376.77 breaks…

📉 Then there is a strong probability that the weekly timeframe will begin a much deeper retracement lower.

And if that occurs, the next major weekly institutional 🟩 demand zone sits much lower around $343 📊

This is a perfect example of how:

🔎 Lower time frames can provide early warnings

🧠 About what the higher time frames may be preparing to do next.