1:5 RR Buy Setup for EURGBP
Updated
Core Analysis Method: Smart Money Concepts
The following analysis has been conducted based on the Smart Money Concepts methodology:
😇 7 Dimension Analysis
Time Frame: H1
Swing Structure:
The structure is bullish with multiple Breaks of Structure (BOS) completed during the impulsive move, including Inducement.
The current corrective swing move is showing signs of weakness in its internal structure, indicating a potential bearish momentum.
A sharp move towards the Point of Interest (POI) is expected, where an extreme Order Block (OB) has been identified in the deepest discounted area for the swing.
Support: A significant support area has been identified at this zone, with proper Change in Polarization (CIP) observed on the H4 timeframe.
Pattern:
🟢 Chart Patterns:
No specific chart patterns have formed yet, but updates will be provided once the price reaches the POI area.
🟢 Candle Patterns:
The previous swing’s initial candles suggest this is a high-demand zone, with the base of the demand indicated by the candle structure.
Volume:
🟢 There is no significant volume during the corrective move, but a massive volume was observed when the initial move started. This suggests that strong buyers are waiting for the price to reach the identified area, where a buying opportunity might be present.
Momentum RSI:
🟢 The market is currently in a super bearish zone, but the price is nearing the oversold area, which is an extremely oversold condition. Monitoring for a divergence as an additional confirmation for a buy will be crucial. The identified area is ideal for a potential reversal.
Volatility Bollinger Bands:
🟢 The complete volatility cycle is observed, including Contraction/Expansion, Squeeze breakout, Walking on the Band, and W pattern. All these parameters have been mitigated. As the price nears the POI level, it may consolidate before giving another sharp and volatile bullish move. Patience is required to capture this classic move.
Strength ADX:
🟢The ADX shows that bears are currently overextended, suggesting it might be time for the market to calm down and for buyers to regain control.
🟢Rating: ⭐⭐⭐⭐⭐⭐⭐ (7 Stars)
This trade is given a 7-star rating, with a probability of 75% due to the alignment of several bullish factors and potential reversal signals.
✔️ Entry Time Frame: H1
✅ Entry TF Structure: Bullish
☑️ POI: Extreme OB
💡 Decision: Buy Limit
🚀 Entry: 0.8511
✋ Stop loss: 0.8475
🎯 Take profit: 0.9695
😊 Risk to reward Ratio: 5 RR
🕛 Expected Duration: 10 Days
SUMMARY:
This setup suggests a strong bullish opportunity on the H1 timeframe, with an entry at 0.8511 and a stop loss at 0.8475. The take profit target is set at 0.9695, offering a 5:1 risk-to-reward ratio. The analysis indicates that the current market conditions are aligning for a potential bullish move, with oversold momentum and key support areas in play. Patience is key as the price approaches the POI, where a classic SMC entry model might provide a high-probability setup for a significant bullish reversal.
The following analysis has been conducted based on the Smart Money Concepts methodology:
😇 7 Dimension Analysis
Time Frame: H1
Swing Structure:
The structure is bullish with multiple Breaks of Structure (BOS) completed during the impulsive move, including Inducement.
The current corrective swing move is showing signs of weakness in its internal structure, indicating a potential bearish momentum.
A sharp move towards the Point of Interest (POI) is expected, where an extreme Order Block (OB) has been identified in the deepest discounted area for the swing.
Support: A significant support area has been identified at this zone, with proper Change in Polarization (CIP) observed on the H4 timeframe.
Pattern:
🟢 Chart Patterns:
No specific chart patterns have formed yet, but updates will be provided once the price reaches the POI area.
🟢 Candle Patterns:
The previous swing’s initial candles suggest this is a high-demand zone, with the base of the demand indicated by the candle structure.
Volume:
🟢 There is no significant volume during the corrective move, but a massive volume was observed when the initial move started. This suggests that strong buyers are waiting for the price to reach the identified area, where a buying opportunity might be present.
Momentum RSI:
🟢 The market is currently in a super bearish zone, but the price is nearing the oversold area, which is an extremely oversold condition. Monitoring for a divergence as an additional confirmation for a buy will be crucial. The identified area is ideal for a potential reversal.
Volatility Bollinger Bands:
🟢 The complete volatility cycle is observed, including Contraction/Expansion, Squeeze breakout, Walking on the Band, and W pattern. All these parameters have been mitigated. As the price nears the POI level, it may consolidate before giving another sharp and volatile bullish move. Patience is required to capture this classic move.
Strength ADX:
🟢The ADX shows that bears are currently overextended, suggesting it might be time for the market to calm down and for buyers to regain control.
🟢Rating: ⭐⭐⭐⭐⭐⭐⭐ (7 Stars)
This trade is given a 7-star rating, with a probability of 75% due to the alignment of several bullish factors and potential reversal signals.
✔️ Entry Time Frame: H1
✅ Entry TF Structure: Bullish
☑️ POI: Extreme OB
💡 Decision: Buy Limit
🚀 Entry: 0.8511
✋ Stop loss: 0.8475
🎯 Take profit: 0.9695
😊 Risk to reward Ratio: 5 RR
🕛 Expected Duration: 10 Days
SUMMARY:
This setup suggests a strong bullish opportunity on the H1 timeframe, with an entry at 0.8511 and a stop loss at 0.8475. The take profit target is set at 0.9695, offering a 5:1 risk-to-reward ratio. The analysis indicates that the current market conditions are aligning for a potential bullish move, with oversold momentum and key support areas in play. Patience is key as the price approaches the POI, where a classic SMC entry model might provide a high-probability setup for a significant bullish reversal.
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