This image illustrates two SELL MODEL entry strategies in trading, both based on price action and supply zone concepts. Here's a breakdown of each model:
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๐ด SELL MODEL โ AGGRESSIVE ENTRY (Top Chart)
BOS (Break of Structure): Price breaks a previous low, indicating a potential bearish move.
Supply Zone: This is where sellers are likely to step in again.
Aggressive Entry: Enter a sell position immediately upon price returning to the supply zone, without waiting for further confirmation.
Pros:
Earlier entry = better risk-to-reward.
Captures most of the move.
Cons:
Higher risk due to lack of confirmation.
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๐ด SELL MODEL โ CONFIRMATION ENTRY (Bottom Chart)
BOS: Initial sign of weakness (bearish).
Supply Zone: Same as above โ where selling pressure is expected.
CHoCH (Change of Character): A minor bullish trend is broken after price revisits the supply zone. This confirms sellers are in control again.
Entry occurs after CHoCH.
Pros:
Higher probability due to confirmation of bearish control.
Safer entry.
Cons:
Later entry = slightly lower risk-to-reward ratio.
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๐ Summary:
Aggressive Entry: Fast, riskier, better R:R.
Confirmation Entry (CHoCH-based): Slower, safer, more conservative.