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First up will learn on how to draw rectangles the right way these rectangles of supply and demand levels
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and there are basically four types of rectangles.
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OK.
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You may be familiar with these terms.
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RB our stance for a rally based rally RBD stands for rally based drug.
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So basically a rally base stops her rally
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the rally
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is
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this is really a really Israeli and the rally based drum
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We have also drop based drop and drop based rally drop
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May's drop came
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the drop here days very
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a good measure how much supplies how much demand are there and the level by looking at how quickly or
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how strongly price moves away from these levels.
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Let's take a look at some charts now.
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Kim trying to spot a rally based rally here.
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OK.
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It's a really good one.
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OK.
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So this is how our usually a draw might rectangles for demands.
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Right.
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I would drive to the bottom of the last candle.
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The lowest point basically a turning point and the top area of the rectangle is where the body last
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Close's.
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This is a rally by Israeli Christ Christchurch's touched it to the pit and bounced off quickly.
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This is a very strong rally based rally right.
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Ms.
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Demanders by orders.
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The bulls are sitting over here buying on a pullback right.
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Getting a better price as the price goes up.
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That's trying to spot the next one rally base drop
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K
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right here
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OK Rally based.
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Drop this example price came really close to touching the bottom of the rectangle that's fine a drop
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based drop.
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Now you go.
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This is a drop based drop on a bigger timeframe.
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Right drum bass drum just came back respected supply area Ciudad adjusted slightly.
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Basically we want to draw the rectangles to the part where the move started from
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drop based drop that's fine to drop based Really.
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OK here goes.
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Basically price came down.
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The Bulls kicked in.
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All right.
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So there you go.
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Those are the four types of rectangles which are levels that contain real by orders of demand and sell
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orders also called supply.
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