BitcoinShort
Entry Explanation: on BTCUSD
Key Context
- Choch (Change of Character):
I identified a clear Change of Character (ChoCH) at the marked level. This shift indicated a potential bearish move as the market transitioned from a higher-high structure to lower-lows, confirming bearish intent.
Premium and Discount Zones:
I used the Fibonacci retracement tool to divide the range into Premium (above 50%) and Discount (below 50%) zones. My goal was to sell in the Premium Zone where sellers are expected to dominate.
Supply Zone (SSS):
Within the Premium Zone, a significant Supply Zone (labeled as "SSS") was identified, where price reacted previously, showing strong bearish rejection. I positioned my entry around this zone, waiting for price to retrace there.
Entry Trigger:
Price retraced into the Supply Zone, showing signs of rejection and weakness, confirming that sellers were active. I placed my sell entry at this point.
Stop Loss Placement:
To manage risk, my stop loss was placed slightly above the Supply Zone to account for potential wicks or liquidity hunts.
Take Profit Strategy:
The Take Profit was strategically set at the blue line below, within a Discount Zone. This aligns with the assumption that price will seek liquidity in lower regions.
- Choch (Change of Character):
I identified a clear Change of Character (ChoCH) at the marked level. This shift indicated a potential bearish move as the market transitioned from a higher-high structure to lower-lows, confirming bearish intent.
Premium and Discount Zones:
I used the Fibonacci retracement tool to divide the range into Premium (above 50%) and Discount (below 50%) zones. My goal was to sell in the Premium Zone where sellers are expected to dominate.
Supply Zone (SSS):
Within the Premium Zone, a significant Supply Zone (labeled as "SSS") was identified, where price reacted previously, showing strong bearish rejection. I positioned my entry around this zone, waiting for price to retrace there.
Entry Trigger:
Price retraced into the Supply Zone, showing signs of rejection and weakness, confirming that sellers were active. I placed my sell entry at this point.
Stop Loss Placement:
To manage risk, my stop loss was placed slightly above the Supply Zone to account for potential wicks or liquidity hunts.
Take Profit Strategy:
The Take Profit was strategically set at the blue line below, within a Discount Zone. This aligns with the assumption that price will seek liquidity in lower regions.
Disclaimer
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.
Disclaimer
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.