Determining how far a market might correct can be challenging. Get in too soon, and you’re underwater in no time. Get in too late, and your risk to reward ratio becomes unfavorable.
While nobody knows where a trend will reverse, there is an easy way to identify areas that act as “magnets”. They pull the price toward them and often trigger a reversal.
Today, I’ll share with you the technique I use to identify these areas and how to leverage the market’s memory to help time your entries and exits.
Using “Event Areas” as Price Magnets
Markets never forget. They love to retest prominent trend lines, yearly opens, and especially areas of previous consolidation.
Today, we’re going to discuss the latter. I like to call these event areas or zones.
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