Stay patient. If strong high breaks -> This prediction does not work. It only works if we get sell signal from Cipher B and we will change of direction. Patience!
📈 Smart Money Concept - Strong High Zone: The "smart money" concept refers to the large institutional traders and sophisticated investors who often possess significant market influence. Identifying a strong high zone involves recognizing a price level where these influential market participants are actively buying or selling. In this context, a strong high zone typically signifies a level where institutional players are selling, suggesting a potential change in market direction.
💼📉 Institutional Presence: Smart money traders often leave their footprint at key levels. A strong high zone is indicative of a region where institutional selling pressure is concentrated, suggesting a collective decision to exit or take profits.
🔄📉 Change in Direction: When a strong high zone is identified, it serves as a potential signal for a change in market direction. It implies that the dominant trend might be losing momentum, and a reversal or correction could be on the horizon.
📉 Cipher B Divergence - Sell Signal: Cipher B is a technical analysis pattern, and divergence refers to a situation where the price moves in the opposite direction of a technical indicator. In this case, a Cipher B divergence sell signal occurs when the price is making higher highs, but the indicator, such as the RSI or MACD, is making lower highs.
🔍📈 Identifying Divergence: Divergence is a powerful tool for spotting potential trend reversals. In the context of Cipher B, a sell signal suggests that, despite rising prices, the underlying momentum or strength is decreasing, indicating a weakening bullish trend.
⚠️ Combining Signals: The combination of a strong high zone and a Cipher B divergence sell signal strengthens the overall bearish case. It implies that not only are institutional traders selling at a notable level, but there is also a divergence between price action and underlying momentum, signaling potential weakness in the current uptrend.
📊💡 Trading Strategy: Traders may consider implementing a sell strategy or adjusting their positions when both the strong high zone and Cipher B divergence sell signal align.
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.