The price is currently located at a strong weekly zone, where sellers have their stop-losses placed above it, and buyers have pending buy orders just above the same level.
This creates a high probability that big players will push the price above the zone to trigger the stop-losses of sellers and activate the buy positions of those waiting to enter long.
What almost always happens next is the following:
The price then drops back below the zone, taking out the buyers as well.
That’s why at strong zones on higher timeframes, a false breakout is often expected.
This creates a high probability that big players will push the price above the zone to trigger the stop-losses of sellers and activate the buy positions of those waiting to enter long.
What almost always happens next is the following:
The price then drops back below the zone, taking out the buyers as well.
That’s why at strong zones on higher timeframes, a false breakout is often expected.
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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.