EURUSD LONGs
This is a candlestick chart of the EUR/USD (Euro/US Dollar) currency pair on the daily timeframe, showing various technical analysis annotations, likely using the Smart Money Concepts (SMC) or institutional trading methodology. Let’s break down the key components:
Supply and Demand Zones:
Supply Zone (Red Area): Located between 1.11200 and 1.12500, the supply zone is where institutional traders are likely to sell, causing price reversals. The market is expected to face resistance here, meaning prices may drop if they reach this zone.
Demand Zone (Gray Area): Located between 1.07410 and 1.08344, the demand zone is where large buying orders are expected to be, leading to a possible price increase if the market reaches this level.
4HCH, 4HBOS:
These annotations represent various market structure points based on the 4-hour (4H) timeframe.
4HCH (4-Hour Change of Character): Indicates a shift in market direction from bullish to bearish or vice versa.
4HBOS (4-Hour Break of Structure): This represents a break in market structure, where price action breaks a key level of support or resistance.
Fair Value Gaps (FVG):
There is a Fair Value Gap (FVG) indicated on the chart between 1.10000 and 1.10500, where price may fill the inefficiency before continuing in the direction of the trend. This is a price imbalance, where price is likely to revisit to balance buyers and sellers.
Liquidity (₤₤₤):
The ₤₤₤ markers above certain areas on the chart (like near 1.12000 and 1.10000) represent liquidity pools. These are areas where stop orders (buy or sell stops) are likely to be placed by retail traders. Smart money may target these levels to execute their trades by triggering the liquidity before moving in the intended direction.
Current Price:
The current price of EUR/USD is marked around 1.09247 at the time of the screenshot. It is just below the Fair Value Gap and might approach the demand zone below.
Overall Interpretation:
The chart appears to show that the EUR/USD pair is in a downward trend after breaking structure (as indicated by the multiple 4HBOS annotations), and it is now approaching a demand zone. The red supply zone above suggests resistance, where the market may see significant selling pressure if price revisits this area.
Traders using this chart may be waiting for the price to reach the demand zone for potential long trades or anticipating further downside if the structure continues to break downward. Alternatively, they might short from the supply zone.
Supply and Demand Zones:
Supply Zone (Red Area): Located between 1.11200 and 1.12500, the supply zone is where institutional traders are likely to sell, causing price reversals. The market is expected to face resistance here, meaning prices may drop if they reach this zone.
Demand Zone (Gray Area): Located between 1.07410 and 1.08344, the demand zone is where large buying orders are expected to be, leading to a possible price increase if the market reaches this level.
4HCH, 4HBOS:
These annotations represent various market structure points based on the 4-hour (4H) timeframe.
4HCH (4-Hour Change of Character): Indicates a shift in market direction from bullish to bearish or vice versa.
4HBOS (4-Hour Break of Structure): This represents a break in market structure, where price action breaks a key level of support or resistance.
Fair Value Gaps (FVG):
There is a Fair Value Gap (FVG) indicated on the chart between 1.10000 and 1.10500, where price may fill the inefficiency before continuing in the direction of the trend. This is a price imbalance, where price is likely to revisit to balance buyers and sellers.
Liquidity (₤₤₤):
The ₤₤₤ markers above certain areas on the chart (like near 1.12000 and 1.10000) represent liquidity pools. These are areas where stop orders (buy or sell stops) are likely to be placed by retail traders. Smart money may target these levels to execute their trades by triggering the liquidity before moving in the intended direction.
Current Price:
The current price of EUR/USD is marked around 1.09247 at the time of the screenshot. It is just below the Fair Value Gap and might approach the demand zone below.
Overall Interpretation:
The chart appears to show that the EUR/USD pair is in a downward trend after breaking structure (as indicated by the multiple 4HBOS annotations), and it is now approaching a demand zone. The red supply zone above suggests resistance, where the market may see significant selling pressure if price revisits this area.
Traders using this chart may be waiting for the price to reach the demand zone for potential long trades or anticipating further downside if the structure continues to break downward. Alternatively, they might short from the supply zone.
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