To take advantage of a demand zones, place limit buys at the top price of a if you expect price to go long in the medium term.
This accomplishes several objectives:
- buying low/aiming for a cheap price
- being contrarian, buying after lots of selling
- staying patient, price has to drop short term before willing to buy
- placing an order at a price with a history of fast moves (orders not filled and left over)
- aligning with big money and their price levels (take advantage of large fast moves)
I personally placed a limit buy at this level. My account is only 15% long right now and my plan is to scale back in. This is the nearest strong well-defined closest to current price that will let me get in at a good price. 4 hour charts are great for scaling into and out of positions, since the levels tend to be stronger and less risky than lower time frames. (The trade off is that it takes longer for price to hit longer term targets than shorter.)