First Level of Respect (FLR)
The demand or supply zone that holds after the last point of counter-trend pressure fails — your structural floor (or ceiling)
The first level of respect is the demand (or supply) zone that holds after the last point of counter-trend pressure fails, establishing your structural floor before entries. For bullish setups: price pulls back into demand, supply creates selling pressure (last point of supply), that supply fails, and the demand zone that held is your FLR — your floor. For bearish setups: the reverse. The FLR confirms the zone is being respected by actual order flow, not just your hopeful analysis. After the FLR is established, a demand or supply chain typically forms from it, creating specific entry zones. The FLR works identically on every timeframe — the 4H FLR gives directional bias, the 15m FLR gives the zone, and the 1m FLR gives the entry. If the FLR breaks, your thesis is invalidated — no averaging in, no hoping.
✓How to Recognize
- •Demand zone holds + last point of supply above it fails = bullish FLR established
- •Supply zone holds + last point of demand below it fails = bearish FLR established
- •The chain that forms after the FLR is your primary entry area
- •FLR works on every timeframe: 4H (direction), 15m (zone), 1m (entry)
⚡How to Avoid
- →Entering before the last point of counter-pressure fails (zone not yet confirmed)
- →Confusing any bounce with an FLR (need structural LPS/LPD failure, not just a wick)
- →Averaging into a position after the FLR breaks (thesis is invalidated)
- →Over-complicating FLR identification: zone holds + counter fails = done