Market Structure and Key Zones
1. Liquidity Zone (LIQ):
- Highlighted at the top where stop-loss orders are potentially clustered. This area serves as a liquidity pool for smart money to target before reversing the price.
2. Change of Character (CH):
- Identified in multiple zones, indicating a shift from bullish to bearish momentum. The initial CH is key to signaling the transition in trend direction.
3. Break of Structure (BOS):
- Occurs twice, confirming the bearish trend continuation. These BOS events validate the structural weakening of bullish momentum.
4. Retracement Zone:
- Post-BOS, the market retraces toward a premium zone (liquidity point), creating an optimal entry point for short positions. Traders are advised to look for entry confirmation here.
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Entry and Exit Strategy
1. Entry Point:
- Suggested at the retracement toward the liquidity pool (marked "LOOK FOR LIQUIDITY AS ENTRY POINT"). This is near the stop-loss (SL) cluster where institutional traders manipulate price for liquidity.
2. Stop Loss (SL):
- Positioned slightly above the liquidity zone to protect against false breakouts or sharp reversals.
Take Profit (TP):
3. Two TP zones are marked:
- TP-1: Near 0.55918, capturing a portion of profits and reducing risk exposure.
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Continuation and Confirmation
*Bearish Continuation:
- Price action suggests further downside after completing the retracement and liquidity sweep. Breaks of structure confirm bearish dominance.
Criteria: At least two breaks of structure (BOS) must occur for validation, as marked.
1. Liquidity Zone (LIQ):
- Highlighted at the top where stop-loss orders are potentially clustered. This area serves as a liquidity pool for smart money to target before reversing the price.
2. Change of Character (CH):
- Identified in multiple zones, indicating a shift from bullish to bearish momentum. The initial CH is key to signaling the transition in trend direction.
3. Break of Structure (BOS):
- Occurs twice, confirming the bearish trend continuation. These BOS events validate the structural weakening of bullish momentum.
4. Retracement Zone:
- Post-BOS, the market retraces toward a premium zone (liquidity point), creating an optimal entry point for short positions. Traders are advised to look for entry confirmation here.
_____________________
Entry and Exit Strategy
1. Entry Point:
- Suggested at the retracement toward the liquidity pool (marked "LOOK FOR LIQUIDITY AS ENTRY POINT"). This is near the stop-loss (SL) cluster where institutional traders manipulate price for liquidity.
2. Stop Loss (SL):
- Positioned slightly above the liquidity zone to protect against false breakouts or sharp reversals.
Take Profit (TP):
3. Two TP zones are marked:
- TP-1: Near 0.55918, capturing a portion of profits and reducing risk exposure.
___________________________
Continuation and Confirmation
*Bearish Continuation:
- Price action suggests further downside after completing the retracement and liquidity sweep. Breaks of structure confirm bearish dominance.
Criteria: At least two breaks of structure (BOS) must occur for validation, as marked.
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.