Rally-Base-Drop: Spotting High-Probability Sell Zones

One of my favorite price action setups is the Rally-Base-Drop (RBD) strategy—especially effective for spotting potential short or sell zones in a downtrend.

Here’s how it works:

Rally: Price moves up quickly, often on strong momentum.

Base: The move pauses, forming a tight consolidation or sideways candles. This “base” is where institutional orders often stack up.

Drop: Price then breaks down sharply, confirming that sellers have stepped in.

When price returns to this base zone, it often faces strong resistance and may reject again. That’s the ideal area to look for a short entry or take profit from long trades.

Why it works:

The base is typically where big players have placed sell orders. When price revisits it, those orders may get triggered again.

Tip:

Mark these zones on higher timeframes (4H, Daily), then zoom in for entries with confirmation like bearish engulfing candles, RSI overbought, or divergence.

I’ll be sharing real RBD examples from my trades soon—follow for more technical setups!

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