It is a trading method that relies on signals in Hot
Spot Trading Zones or HSTZ.
A higher low after a higher high or a lower high after a lower low
is a HSTZ. There are other high probability trading zones such as
the retest point of a “broken” support or resistance level, first lower
high that follows a double top chart pattern, and the first higher low that
forms after a double bottom price structure.
In addition, a high chance trading place or
HSTZ is also a high advantage price level
at which countless market participants are
willing to purchase or sell an asset (with the
best reward-risk ratio). The most reliable
trading signals often surface in these areas.
Consequently, it is adequate to call them
Daily chart Pound-Dollar focal trading zones because they draw
huge trading volume.
Financial market traders and investors rely on the finest
entry price in or near the HSTZ. Risks are more manageable in these circumstances, and new trends or market cycles typically originate from these points. One may also label them
traders or investors meeting points (lieux de rendez-vous in French).
One should also realize that these focal points regularly turn into a support or
resistance price level.
Furthermore, financial instruments rise or decline from one
focal point to the next. Therefore, day or swing traders and investors ought to time
the market around these areas. Although, a convergent point is as well a hot spot
trading zone, a HSTZ is not at all times a convergent point (know more about
will help them enhance their trading and investment decisions.
Image: meeting point
Description: Hot spot trading tips and tricks
Trading markets discussion