Euro / British PoundShort
7 Dimension Sell Setup for EURGBP
Updated
😇 7 Dimension Analysis
Top-Down View:
A daily internal swing breach indicates the possibility of a retracement to fill the Daily Fair Value Gap (FVG) area. Additionally, an H4 Change of Character (CHoCH) along with a major swing liquidity sweep suggests a move towards the H4 inducement area, which aligns with the H1 decisional order block and the Daily Bullish FVG, creating a robust buy Point of Interest (POI) for long-term entries. However, in this 15-minute analysis, we focus on the short-term bearish momentum for a counter-trend sell entry.
Analysis Time Frame: 15-Minute (15M)
Swing Structure:
Bullish with BOS (Break of Structure): The 15M structure is bullish with a valid BOS, which took an inducement to confirm a swing high.
Discount Zone: We’re waiting for the price to enter the discounted zone to mitigate the POI, which has been refined across multiple time frames. The target area is between 0.8340 and 0.8420, where liquidity is expected to be resting.
Pattern:
🟢 Chart Patterns:
Flag Pattern: An H1 flag pattern indicates strong sell-side momentum, reinforcing the idea of a retracement within this bullish structure.
🟢 Candle Patterns:
Momentum Candles: Strong momentum candles closing bearishly indicate solid selling pressure in the area of interest.
Volume:
A noticeable increase in volume on the last candle suggests significant interest from sellers, supporting a bearish bias in the short term.
Momentum (RSI):
🟢 Super Bearish Zone: Momentum is in the super bearish zone with a clear range shift, indicating that bearish pressure may continue in the immediate term.
Volatility (Bollinger Bands):
🟢 Contraction and Squeeze: Following a volatile move, price contraction has led to a tight squeeze on the bands. A clear “M” pattern has formed within this squeeze, and we now expect a continuation of bearish momentum with a “walking on the band” move on the downside.
Strength (ROC and DMI):
ROC and DMI Analysis: The Bearish DMI line is sharply increasing, indicating strong bearish momentum. The setup suggests an anticipated strong selling attempt as the market opens.
Rating: ⭐⭐⭐⭐
Probability: 75%
Overall, the analysis provides high confidence in a short-term pullback, with several technical indicators and patterns supporting a temporary bearish move.
Trade Setup:
Entry Details:
Entry Time Frame: 15-Minute
Entry TF Structure: Bullish (counter-trend)
Point of Interest (POI): Recent Order Flow
Trade Execution:
💡 Decision: Sell Limit
🚀 Entry: 0.8379
✋ Stop Loss: 0.8391
🎯 Take Profit: 0.8340
😊 Risk to Reward Ratio: 3.25 RR
🕛 Expected Duration: 1 Day
SUMMARY:
This short-term sell setup targets a counter-trend pullback within a larger bullish structure on the higher time frames. With multiple confluences including strong sell-side volume, bearish flag patterns, and clear RSI bearish momentum, this setup anticipates a retracement to the identified support zone. A Sell Limit order at 0.8379 seeks to capture the downside move towards 0.8340, offering a favorable 3.25 RR.
Top-Down View:
A daily internal swing breach indicates the possibility of a retracement to fill the Daily Fair Value Gap (FVG) area. Additionally, an H4 Change of Character (CHoCH) along with a major swing liquidity sweep suggests a move towards the H4 inducement area, which aligns with the H1 decisional order block and the Daily Bullish FVG, creating a robust buy Point of Interest (POI) for long-term entries. However, in this 15-minute analysis, we focus on the short-term bearish momentum for a counter-trend sell entry.
Analysis Time Frame: 15-Minute (15M)
Swing Structure:
Bullish with BOS (Break of Structure): The 15M structure is bullish with a valid BOS, which took an inducement to confirm a swing high.
Discount Zone: We’re waiting for the price to enter the discounted zone to mitigate the POI, which has been refined across multiple time frames. The target area is between 0.8340 and 0.8420, where liquidity is expected to be resting.
Pattern:
🟢 Chart Patterns:
Flag Pattern: An H1 flag pattern indicates strong sell-side momentum, reinforcing the idea of a retracement within this bullish structure.
🟢 Candle Patterns:
Momentum Candles: Strong momentum candles closing bearishly indicate solid selling pressure in the area of interest.
Volume:
A noticeable increase in volume on the last candle suggests significant interest from sellers, supporting a bearish bias in the short term.
Momentum (RSI):
🟢 Super Bearish Zone: Momentum is in the super bearish zone with a clear range shift, indicating that bearish pressure may continue in the immediate term.
Volatility (Bollinger Bands):
🟢 Contraction and Squeeze: Following a volatile move, price contraction has led to a tight squeeze on the bands. A clear “M” pattern has formed within this squeeze, and we now expect a continuation of bearish momentum with a “walking on the band” move on the downside.
Strength (ROC and DMI):
ROC and DMI Analysis: The Bearish DMI line is sharply increasing, indicating strong bearish momentum. The setup suggests an anticipated strong selling attempt as the market opens.
Rating: ⭐⭐⭐⭐
Probability: 75%
Overall, the analysis provides high confidence in a short-term pullback, with several technical indicators and patterns supporting a temporary bearish move.
Trade Setup:
Entry Details:
Entry Time Frame: 15-Minute
Entry TF Structure: Bullish (counter-trend)
Point of Interest (POI): Recent Order Flow
Trade Execution:
💡 Decision: Sell Limit
🚀 Entry: 0.8379
✋ Stop Loss: 0.8391
🎯 Take Profit: 0.8340
😊 Risk to Reward Ratio: 3.25 RR
🕛 Expected Duration: 1 Day
SUMMARY:
This short-term sell setup targets a counter-trend pullback within a larger bullish structure on the higher time frames. With multiple confluences including strong sell-side volume, bearish flag patterns, and clear RSI bearish momentum, this setup anticipates a retracement to the identified support zone. A Sell Limit order at 0.8379 seeks to capture the downside move towards 0.8340, offering a favorable 3.25 RR.
Trade closed: stop reached
Stop out
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