Market Context (Bearish Smart Money Perspective)
1️⃣ Liquidity Grab & Inducement (IDM 4HR)
The market has engineered liquidity above previous highs to attract retail buyers.
Price tapped into the IDM 4HR inducement zone, where smart money may distribute orders before reversing.
2️⃣ Break of Structure (BOS 4HR/W)
A previous BOS (Break of Structure) on the 4HR/Weekly timeframe indicates bearish intent.
This confirms that the market has shifted away from a bullish trend.
3️⃣ Order Flow – Smart Money Trap
This bullish move into the IDM 4HR zone was likely a "fake pump" (liquidity grab) before a bearish reversal.
Smart money might now execute sell-side liquidity grabs, pushing price lower.
🔹 Bearish Trading Plan (Short Setup)
🔸 Entry Strategy – Smart Money Rejection
📌 Step 1: Confirm IDM 4HR Rejection
Look for a strong bearish engulfing candle on 1HR or 4HR after price enters the IDM zone.
Ensure liquidity has been grabbed above recent highs before entering short.
📌 Step 2: Market Structure Shift (MSS) on LTF
Drop to M15 or M5 and wait for a market structure shift (MSS), indicating bearish pressure.
Identify Fair Value Gaps (FVGs) or Order Blocks (OBs) in the IDM rejection zone.
📌 Step 3: Entry Confirmation & Execution
Enter on the retest of a bearish OB or FVG inside the IDM 4HR zone.
Ensure that price forms a Lower High (LH) after rejection.
🔹 Stop Loss & Take Profit Targets
✅ SL (Stop Loss): Above the IDM 4HR high to avoid stop hunts.
✅ TP1: BOS 4HR/W level (Liquidity Pool) – This is the first downside target.
✅ TP2: 1.05277 key support level – Next bearish liquidity zone.
✅ TP3 (Extended): If momentum continues, expect price to sweep deeper into a Discount Price Range for further sell-side delivery.
📉 Smart Money Execution – Key Bearish Confluences
🔸 Liquidity must be taken first! (No liquidity grab = No trade)
🔸 SMT Divergence with DXY – If DXY is strong, bearish confirmation strengthens.
🔸 Ensure entry from Premium Pricing Zone (discount zones are for buying).
🔸 Risk-Reward must be 1:3 minimum – no forced entries.
📌 Bearish Bias Confirmation – What to Watch For?
✅ Rejection from IDM 4HR with strong bearish candles.
✅ M15/M5 structure shift (MSS) confirming downside momentum.
✅ Volume spike on the sell-side + SMT divergence.
✅ Failure to reclaim IDM 4HR zone = Strong Bearish Bias!
🔥 High-Probability Bearish Setup – Execution Plan
1️⃣ Wait for a false breakout above IDM 4HR liquidity.
2️⃣ Identify a bearish engulfing rejection on the 4HR/1HR timeframe.
3️⃣ Enter short on retest of OB/FVG after MSS confirmation on M15/M5.
4️⃣ Target BOS liquidity zones for profit-taking.
1️⃣ Liquidity Grab & Inducement (IDM 4HR)
The market has engineered liquidity above previous highs to attract retail buyers.
Price tapped into the IDM 4HR inducement zone, where smart money may distribute orders before reversing.
2️⃣ Break of Structure (BOS 4HR/W)
A previous BOS (Break of Structure) on the 4HR/Weekly timeframe indicates bearish intent.
This confirms that the market has shifted away from a bullish trend.
3️⃣ Order Flow – Smart Money Trap
This bullish move into the IDM 4HR zone was likely a "fake pump" (liquidity grab) before a bearish reversal.
Smart money might now execute sell-side liquidity grabs, pushing price lower.
🔹 Bearish Trading Plan (Short Setup)
🔸 Entry Strategy – Smart Money Rejection
📌 Step 1: Confirm IDM 4HR Rejection
Look for a strong bearish engulfing candle on 1HR or 4HR after price enters the IDM zone.
Ensure liquidity has been grabbed above recent highs before entering short.
📌 Step 2: Market Structure Shift (MSS) on LTF
Drop to M15 or M5 and wait for a market structure shift (MSS), indicating bearish pressure.
Identify Fair Value Gaps (FVGs) or Order Blocks (OBs) in the IDM rejection zone.
📌 Step 3: Entry Confirmation & Execution
Enter on the retest of a bearish OB or FVG inside the IDM 4HR zone.
Ensure that price forms a Lower High (LH) after rejection.
🔹 Stop Loss & Take Profit Targets
✅ SL (Stop Loss): Above the IDM 4HR high to avoid stop hunts.
✅ TP1: BOS 4HR/W level (Liquidity Pool) – This is the first downside target.
✅ TP2: 1.05277 key support level – Next bearish liquidity zone.
✅ TP3 (Extended): If momentum continues, expect price to sweep deeper into a Discount Price Range for further sell-side delivery.
📉 Smart Money Execution – Key Bearish Confluences
🔸 Liquidity must be taken first! (No liquidity grab = No trade)
🔸 SMT Divergence with DXY – If DXY is strong, bearish confirmation strengthens.
🔸 Ensure entry from Premium Pricing Zone (discount zones are for buying).
🔸 Risk-Reward must be 1:3 minimum – no forced entries.
📌 Bearish Bias Confirmation – What to Watch For?
✅ Rejection from IDM 4HR with strong bearish candles.
✅ M15/M5 structure shift (MSS) confirming downside momentum.
✅ Volume spike on the sell-side + SMT divergence.
✅ Failure to reclaim IDM 4HR zone = Strong Bearish Bias!
🔥 High-Probability Bearish Setup – Execution Plan
1️⃣ Wait for a false breakout above IDM 4HR liquidity.
2️⃣ Identify a bearish engulfing rejection on the 4HR/1HR timeframe.
3️⃣ Enter short on retest of OB/FVG after MSS confirmation on M15/M5.
4️⃣ Target BOS liquidity zones for profit-taking.
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.