Smt Order Flow (Simplified Version)#
Introduction#
STM is a technical tool used for trading analysis, focusing on assisting trading decisions by identifying order flow and support/resistance areas.
Practical Application:#
In segment 4, segments 1-3 show a downtrend, and the area created by ① becomes a resistance zone.
③ is unable to move upward due to the resistance zone created by ②.
Therefore, in ④, it is very likely that it will be unable to move upward due to the resistance area of ③ ==consider short-term intervention to go short==
As this image shows, in ④ it reached the support area of the order block, so it will briefly move upward (instead of directly downward).
Summary:#
This pattern can only increase the success rate, not ==guarantee success==.