🔑 Key Points from the Chart:
1.Inducement:
A price level engineered to trap breakout traders before reversing.
The chart shows a false breakout above the previous high, which induces buyers.
2.Sweep:
The market sweeps the prior highs (liquidity grab), enticing breakout traders.
Price shortly reverses after triggering stop orders above.
3.Ex-Liquidity (External Liquidity):
Refers to stop-loss clusters above the high.
This liquidity is taken out, leading to a reversal.
4.Entry Zone:
A supply zone where the price revisits after the sweep.
Ideal short entry indicated in the maroon box.
5.Stoploss:
Placed above the inducement high (post-sweep high).
Clearly labeled to show safe invalidation zone.
T6.rendline Liquidity:
Diagonal support connecting higher lows.
Acts as a trap—once broken, confirms bearish intent.
7.Internal Liquidity:
Major demand zone where price is expected to head next.
Target for the short setup, marked in a large maroon rectangle.
8.Projected Price Path:
White line showing expected bearish move.
Aims for internal liquidity zone below $181.
1.Inducement:
A price level engineered to trap breakout traders before reversing.
The chart shows a false breakout above the previous high, which induces buyers.
2.Sweep:
The market sweeps the prior highs (liquidity grab), enticing breakout traders.
Price shortly reverses after triggering stop orders above.
3.Ex-Liquidity (External Liquidity):
Refers to stop-loss clusters above the high.
This liquidity is taken out, leading to a reversal.
4.Entry Zone:
A supply zone where the price revisits after the sweep.
Ideal short entry indicated in the maroon box.
5.Stoploss:
Placed above the inducement high (post-sweep high).
Clearly labeled to show safe invalidation zone.
T6.rendline Liquidity:
Diagonal support connecting higher lows.
Acts as a trap—once broken, confirms bearish intent.
7.Internal Liquidity:
Major demand zone where price is expected to head next.
Target for the short setup, marked in a large maroon rectangle.
8.Projected Price Path:
White line showing expected bearish move.
Aims for internal liquidity zone below $181.
Trade closed: stop reached
SOL turned bearish after the liquidity at slightly above the SL.
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.