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6.why Zones Fail (Part 2)
6.why Zones Fail (Part 2)
Beyond the market structure discussed in Part 1, there are two additional items to consider
when determining why a zone might fail:
1.) Time - the longer the price spends in a zone, the higher chance the
zone will fail.
2.) Depth - the deeper the price goes into a zone, the higher the chance
the zone will fail.
Key Reminder: When looking at price action the time (amount of candles) and depth into the
zone can both help indicate the potential of stopping out. These two items combined with
market structure awareness can help a trader understand why a zone might fail.