Supply/demand absorption of the oposite players.
Understanding when supply or demand is being absorbed or the sup/dem is failing to deliver a bounce often points towards a hint for supply or demand takeout, it is significant detail of information to note on price behaviour in order to anticipate which key area of price is likely to be taken out. In order to note that its needed to take whole structure in consideration on how price was normally behaving before and what has changed on current stance that could point to supply/demand absorption.Supply takeout has only two possible phases of behaviour:
-1. Supply is taken out with significant swipe move flying trough the supply zone without any rejection
-2.Price starts to build micro shelf right at the supply area and slowly absorbing supply and then taking it out
Understanding the takeout process, and rounding along with initial/whole area supply is the key to understanding possible trend rotations. No indicator will give a solid statistical performance of finding rotations with over 50% accurancy and consistent performance, for that trader has to ensure it trough reading price behaviour changes, the key is in spotting the change of behaving compared to previous structural moves.
Conceptual representation:
Example
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