Zone quality: how to sift out the strong ones

Zones are not all equal; some are strong and dependable, and some are weak and best left alone. Three main criteria separate the strong from the weak.

The quality criteria

• Strength of the exit — the more violent and extended the surge leaving the base (by twice the height of the zone or more), the stronger the zone; a powerful exit is proof of a sharp break in the balance.
• Freshness — a fresh zone that price has not returned to yet is far stronger than one tested repeatedly, because each return consumes part of the orders remaining in it.
• Time in the zone — the fewer the candles inside the base (roughly not more than six), the more it indicates a fast, decisive accumulation; a long, sluggish base weakens the zone.