Microbalance



Microbalance (semi microbial) - this is a short-term movement in the narrow corridor. The ideal microbial are the few candles out of the graph that have the same minimum and maximum.
How to sell the microphone

In fact, microbial trade is not so difficult. It is nothing more than a mini-accumulation zone. Therefore, we must trade this form, as we do in the standard accumulation zone. In particular, we should wait for which side will come from the given microbalance and then when the correction starts and the price is closer to that microbalance, we should see if what will be the price and volume (vertical, horizontal, clustering) in the reaction zone of the microbalance. Consider a specific example.


Picture 1 - Opening a microbalance during testing

As the picture shows, the price from the microbalance is above the price.  Accordingly, in the case of correction, we should open the position only on the buy. We are looking for this micro-zone zone test. Therefore, we will hear the following questions, given that we are dealing with the micro-zone of the accumulation, which level should be considered valuable, from where the price will be cut and the further movement is in our preferred direction.

Because this is the micro-zone of the accumulation, we should only consider this micro-level POC level. And in order to understand the POC benchmark of this microbalance, we need to use the horizontal volume profile. The POC's level of accumulation zone, as you know, is the level where you have the most contracted contract, which means that this is the level of interest of the big player will be fixed and its testing will be very likely.

As shown above, except that the test was performed at the POC level, the large player took additional liquidity from the limit of the order, indicating that the 8 candles in this microphone have the same minimum price.


Picture 2 - small cluster volumes in the microbalance

When checking the microbalance's POC level, we should pay attention to the two main points. With the level, the price stops or a large limit warranty, or a small cluster volume. If one of these factors exists, we can open the position in our preferred direction.

As shown in the picture, in this case, we deal with small cluster volumes, which means that the seller will sell the asset is very small, accordingly, the price will go above the levels where the sellers will be able to make transactions. 

It is possible to use microbial trade through the above system. However, it should be said that it was a standard and easy to sell form, there are relatively hard moments and I would like to consider one such example and see what methods of betting are available through trading.


Picture 3 - two-level microbalance

As shown in the picture, in this case, we have the so-called "Two-level microbalance", when the price is out of the balance sheet, forms a new balance on the top or bottom of the previous accumulation zone. This means that although the buyer/seller has won in the accumulation of the accumulation and the price from the accumulation zone to the desired direction, the opposing side is still strong and strongly opposed to it.

In the case of the first two level, the price was bought from the accumulation zone, according to the retail traders who bought the positions to buy the positions. But the price did not go further and instead created a new micro-balance zone, where the price has already been sold, so the small traders who have been selling on the buy out of the market with stop orders. The price has been tested by the previous microbalance's POC level and started to accumulate. Retailers saw what they had been selling out of the new balance sheet, they started selling new positions, hoping that they would now have the price in their desired direction. But once again, they came out of the balance sheet against the buyers and the small traders who had opened up the short positions from the market. 

In this case, the price of the previous balance zone POC level was tested and the formation of the new accumulation zone was started. But this time the price from the microbalance was the POC level breakdown of the previous accumulation zone, which is a very strong signal that the seller won in this difficult fight and we should expect the price move down below. Our point of entry was the POC level test of the previous balance.





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