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Module 5: Lesson 2


Drop Base Drop is the abbreviation for Drop Base Drop. The price drops, and then reaches a base and drops even lower from there. In a bearish market, this happens.

IMAGE 2 module 5

Another excellent example in the charts can be found below. The price drops, then rise to meet resistance (Base), and then falls again. In this case, the first time the price returns to the supply zone will be your entry point. You wait for a nice rejection candle at that point and then begin selling at the next Candle.

5-10 pips above the zone set a stop-loss. You could sell a second time.

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


Optional Assignment

Send two screenshots of the DBD mapped out in the charts as homework.