*Tools & Patterns Used in This Chart (GBP/USD - 45m Chart)*
#### *Key Tools & Concepts Applied:*
1. *CHOCH (Change of Character)*
- A shift in market structure indicating a possible trend reversal.
2. *BOS (Break of Structure)*
- Confirms bearish momentum by breaking previous lows, signaling a continuation downward.
3. *Order Block (OB) - Supply Zone*
- The *pink highlighted area* marks an institutional *sell zone*, acting as a resistance level for potential short entries.
4. *Trend Line & Break*
- A descending *trend line* helps identify the bearish trend, showing rejection from the *order block* and maintaining the downward trend.
5. *Liquidity Draw Movement (LDM)*
- Suggests price liquidity areas before the expected price drop.
6. *Risk-to-Reward Setup:*
- *Stop Loss (Red Zone - Above OB)* → Limits risk if price invalidates the setup.
- *Take Profit (TP - Blue Zone at Lower Support Level)* → Target price based on structure.
### *Pattern Used:*
- *Bearish Trend Continuation Pattern* → Price is retesting the *order block* before a potential continuation downward.
### *Conclusion:*
This chart follows a *smart money trading approach, using CHOCH, BOS, Order Blocks, and Trend Lines to anticipate a **short (sell) trade setup* with a well-defined risk-to-reward strategy.
Would you like more details on any of these concepts?
#### *Key Tools & Concepts Applied:*
1. *CHOCH (Change of Character)*
- A shift in market structure indicating a possible trend reversal.
2. *BOS (Break of Structure)*
- Confirms bearish momentum by breaking previous lows, signaling a continuation downward.
3. *Order Block (OB) - Supply Zone*
- The *pink highlighted area* marks an institutional *sell zone*, acting as a resistance level for potential short entries.
4. *Trend Line & Break*
- A descending *trend line* helps identify the bearish trend, showing rejection from the *order block* and maintaining the downward trend.
5. *Liquidity Draw Movement (LDM)*
- Suggests price liquidity areas before the expected price drop.
6. *Risk-to-Reward Setup:*
- *Stop Loss (Red Zone - Above OB)* → Limits risk if price invalidates the setup.
- *Take Profit (TP - Blue Zone at Lower Support Level)* → Target price based on structure.
### *Pattern Used:*
- *Bearish Trend Continuation Pattern* → Price is retesting the *order block* before a potential continuation downward.
### *Conclusion:*
This chart follows a *smart money trading approach, using CHOCH, BOS, Order Blocks, and Trend Lines to anticipate a **short (sell) trade setup* with a well-defined risk-to-reward strategy.
Would you like more details on any of these concepts?
Note
This chart is made up for just educational purpose.
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.