“Event areas” in trading usually refer to key price zones where important market events, news releases, or economic data have caused significant price reactions. These areas often act as strong support or resistance zones because traders remember the volatility and volume there.
“Event-Areas”
In the disciplined world of financial trading, event-areas denote critical junctures on a price chart where significant, market-moving news or data releases are anticipated or confirmed. These can include macroeconomic reports, central bank policy statements, or corporate earnings announcements.
The professional significance of these areas lies in their capacity to trigger substantial shifts in volatility and direction, often acting as catalysts for new trends or reversals. While seasoned traders meticulously prepare for these moments, one might humorously note that even the most meticulously planned strategies can find themselves delightfully “re-evaluated” as the market reacts to the news, reminding us all that even charts have a flair for the dramatic when major events unfold.
16. The Power of Event-Areas
Alright, my delightful market divas and chart comedians! We’ve sailed the seas of trends, dodged the trickster Hikkake, and even learned to appreciate the wobbly wisdom of wicks. But now, let’s talk about the places
Event Areas: Key Price Zones in Trading
In trading, Event Areas refer to specific price levels or zones on a chart where significant market activity has occurred in the past, or where a strong reaction from price is anticipated. These areas are crucial because they represent points where supply and demand dynamics have previously shifted, leading to noticeable price behavior.
They are essentially historical markers that often influence future price action, acting as psychological and structural barriers or magnets for price.
Common types of Event Areas include:
Support Zones:
Definition: A price level or zone where buying interest has historically been strong enough to prevent the price from falling further, causing it to bounce back up. It represents a floor for price.
Significance: When price approaches support, traders watch for signs of buying pressure, anticipating a potential bounce. A break below support, however, can signal further declines.
Resistance Zones:
Definition: A price level or zone where selling interest has historically been strong enough to prevent the price from rising higher, causing it to reverse or pull back. It represents a ceiling for price.
Significance: When price approaches resistance, traders look for signs of selling pressure, anticipating a potential pullback. A break above resistance, however, can signal further advances.
Supply and Demand Zones:
Definition: Broader areas (rather than single lines) on a chart where large institutional orders were previously executed, creating an imbalance between buyers and sellers. Supply zones are areas where sellers dominated, and demand zones are where buyers dominated.
Significance: Price often retests these zones, as there may still be pending orders that will be triggered, causing a reaction.
Previous Major Highs and Lows:
Definition: Significant peaks or troughs in price action from the past, whether recent or long-term.
Significance: These levels often act as psychological barriers or magnets. Traders remember these points, and price can react strongly when retesting them. For instance, an old high, once broken, can often act as new support.
Areas of High Volume:
Definition: Price levels where an unusually high amount of trading activity (volume) occurred, often associated with major news announcements, large institutional entries/exits, or significant shifts in sentiment.
Significance: These areas indicate where a lot of capital was exchanged, making them strong points of interest where price might consolidate, reverse, or accelerate upon retesting.
Importance of Event Areas:
Decision Points: They serve as critical decision points for traders, offering potential entry, exit, or stop-loss placements.
Confirmation: Price action around event areas can confirm the strength or weakness of a trend. For example, a bounce off support confirms an uptrend’s resilience.
Anticipation: By identifying these areas, traders can anticipate potential turning points or acceleration points in price, allowing for more strategic planning.
Market Psychology: These zones reflect collective market psychology, as many traders and algorithms react to these widely recognized levels.
Understanding and identifying event areas is a fundamental skill in price action trading, as it helps traders contextualize current price movements and anticipate future behavior based on historical market reactions.
💰Quotes:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
💰Normal Tone Slogans:
“Enter with a plan, then let the trade play out.”
“The work is in the setup — the result comes with patience.”
“We don’t babysit trades. We trust our edge.”
“Entry is action. Waiting is discipline.”
“After entry, emotion has no place — only patience.”
💰What Are Event Areas?
Definition: Price levels or zones where major events (like economic reports, central bank decisions, or geopolitical news) triggered big moves.
Why Important: These areas tend to have a lot of orders clustered, making them potential reversal or breakout points.
How Traders Use Them: As reference points for entries, exits, or stops because price often reacts strongly when revisiting these zones.
💰
Angle of the Trend: Is the slope steep and consistent, or shallow and bumpy? A steeper, more consistent slope often indicates a stronger, more reliable “friend.”
💰🧘 Confirming tools (at a glance):
Moving Averages: If you have them on your chart, are the prices consistently above a rising moving average (uptrend friend) or below a falling one (downtrend friend)? Are the moving averages themselves sloped in a clear direction?
Higher Highs/Higher Lows or Lower Lows/Lower Highs: Can you easily spot this “staircase” pattern?
💰In essence, your very first action is a rapid visual assessment: “Where is the market clearly trying to go?” If it’s not clearly trying to go anywhere, then your strategy (following the trend) dictates that you don’t have a trade.
Event-Areas
💰
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
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💰
Price action is the foundation of technical trading. It refers to the movement of price over time, without relying on indicators. Here’s why it’s powerful:
🔥 The Power of Price Action:
Simplicity
Price action strips away distractions. Traders read candles, structure, and key levels directly from the chart.Real-Time Clarity
It reflects real-time decisions of buyers and sellers, showing where the market is reacting.Universal Application
Works on all timeframes and markets—forex, stocks, crypto.Identifies Key Setups
Patterns like:Pin bars
Engulfing candles
Inside bars
Break and retest
provide high-probability entries.
Institutional Footprints
Price action helps you “see” what smart money is doing—entries at key levels, liquidity grabs, false breaks, etc.No Lag
Unlike indicators, it’s immediate—based on what’s happening now, not 10 bars ago.
💰
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
💰
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”