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Lesson 24

6. DBR

The DBR Drop Base Rally can be used to draw supply and demand zones. The price drops, then form a base, and then rises again from that base. The price then drops to its lowest point before rising again.

IMAGE 5 module 5

We can clearly see how to determine where a DBR area can be found in the image above. On an indecision candle, I always make the base. If I do not see it on the time frame I am on right now; I switch to a higher or lower time frame where we can usually find it.

Then we return to the line chart to draw a nice line to locate the base’s strongest point. This is the point where price usually rejects and rises again.

We can clearly see how you could trade the DBR in this image. But keep in mind the fundamentals of supply and demand. (Solid foundation, Weak Foundation, and so on.)

(In-Depth Explanation in the Video at the end of this Module).