B S Z

BSZ; IGNORED LVLS

BSZ

The BSZ is something you’ll see an awful lot once you’ve trained yourself to spot it.

Firstly, let’s understand the name. It stands for Breakout and Stops Zone.

It also stands for “BS” Zone, and for good reason!

Retail traders are still believing what they’re told about the markets:

So, the ITs (and we!) know that there are tons of buys above a range (the stop of a sell is a buy), and sells below.

When the ITs want to buy at a certain level, they can very easily create a 2B (double bottom) just above it, happy in the knowledge that the next time they bring price back there, they can get retail sellers to sell to the retail buyers on approach, then push price down to take the stops (sells) and breakout sells.

So, should you see a double 2B or 2T, look beyond it, for clean orders at the best price in your zone.

Ignored Levels

IGNORED LEVELS – Another important Decision Point

A level which is ignored or not respected can act as a wonderful place to look for a trade. By now you would know that we trade at the limits of a flag which are the kinks of a barrier which have broken, Failed to Return (FTR) and met its first target. Once the first target has been met. It becomes a Flag Limit (FL)

These barriers are;

- The break into or out of Compression (extremes of CP)
- Highs and Lows (S/R)
- Left shoulders (LS)

The before mentioned barriers and their respective FL’s act as an edge of a Price Action Zone (PAZ). If you are still unclear of what a FL is, please stop here and go back to the FL lesson.

Now, let’s have a think about what we expect to happen at these levels. We assume there to be some type of bounce. If price slices beyond the level like a hot knife through butter, with no reaction what so ever, we need to ask why is this so? With this question at the forefront of our mind and our understanding of order flow we can deduce that if it’s ignored on the way through then on the revisit to the area, the FL may have a reaction. Therefore, these Ignored areas which become FLs within themselves could be great areas for a trade or target. These areas are;

Ignored (break in or out) Compression (iCP)

Ignored S/R (iSR)

Ignored Left Shoulder (iLS) These may also be Ignored Quasimodo Level (iQM)

Although all these areas ought to be considered for a conservative first target some will be better candidates than others for an entry. If you want to rank them in order of how effective they are. You may find the iLS/iQM to be the more effective for price bounces or reversals, with iSR somewhere in between and usually the iCPs to be the weaker ones. I must stress that even the weaker ones ought to be considered for a conservative first target. Like everything else, these levels do not mean you can negate analysis covered in other lessons.

A broken level does not mean an ignored level 

Just because a level breaks it does not mean it has been ignored. If we do not understand the difference between ignored and used up, then our analysis will never be consistent. For us to make this determination lets cast our mind back to what has been said about FLs. We know that for a FTR to be considered a FL price MUST hit the opposing first target. So, it’s only logical to also apply this to ignored levels. Meaning, if price hits an area, reacts and does not hit the opposing target, we can consider it an ignored area.

Conversely, if price hits the area and bounces back to the opposing first target then it cannot be considered ignored.

See below for an example of analyzing an area to determine if it is ignored or used up. Keep in mind this applies across all financial instruments, pairs and timeframes.

FINDINGS ON IGNORED

https://readthemarket.com/index.php/en/forum/trading-articles-discussions/2887-ignored-levels#64794

I've been thinking why "ignored levels" is not put in the PAST section, but rather positioned in the APPROACH, alongside with CP, 3-D, & BSZ. My best guess would be something to do with what constitutes PA (which makes PAST zones) and what constitutes non-PA (which makes approach zones) for/inside the scale or PAZ of PAST zones.

Here are my interpretations for:

the 2 diagrams in the article that show "respected" zones. 

and the next 3 diagrams in the article that show "ignored" zones:

And of course: for these ignored zones,

When the ignored FL zones do break back after being re-approached, depending on its reaction and where the origin of price before re-approaching, then the target is obviously the other-end FL on the opposite side, where price previously failed to reach before it advanced away.