Key Observations:
Imbalance Zone Identified (Supply-Demand Gap):
The pink zone is marked as an imbalance — an area where price moved too quickly upward, leaving little trading volume in between.
These imbalances often act like magnets, drawing price back to "fill" them.
Recent Price Action:
Price recently formed a peak and has since started pulling back.
The latest candlesticks show bearish momentum (a series of red Heikin Ashi candles with increasing size).
Projected Price Movement:
A blue arrow projects a further decline into the imbalance zone, suggesting price may retest this level for liquidity or to complete a retracement.
Target Area:
The imbalance zone lies approximately between 5,680 and 5,736, with a midpoint around 5,710.
This is a logical target for a pullback before potentially resuming upward.
📉 Bearish Bias Justification:
Market Structure: A new lower high is forming, possibly signaling a short-term reversal or correction.
Heikin Ashi Candles: Smooth and elongated bearish candles indicate strength in the down move.
Volume Imbalance Theory: Price may need to fill this inefficiency before finding new direction.
✅ Possible Trading Implications:
Short Setup: Traders might look for short positions with targets inside the imbalance zone.
Buy Opportunity: Once the imbalance is filled, if bullish price action confirms, it could become a strong buy zone.
⚠️ What to Watch:
Look for confirmation (e.g., candlestick reversal or support forming) in the imbalance area before assuming reversal.
News/events (such as the economic calendar icons below) might impact price direction sharply.
Imbalance Zone Identified (Supply-Demand Gap):
The pink zone is marked as an imbalance — an area where price moved too quickly upward, leaving little trading volume in between.
These imbalances often act like magnets, drawing price back to "fill" them.
Recent Price Action:
Price recently formed a peak and has since started pulling back.
The latest candlesticks show bearish momentum (a series of red Heikin Ashi candles with increasing size).
Projected Price Movement:
A blue arrow projects a further decline into the imbalance zone, suggesting price may retest this level for liquidity or to complete a retracement.
Target Area:
The imbalance zone lies approximately between 5,680 and 5,736, with a midpoint around 5,710.
This is a logical target for a pullback before potentially resuming upward.
📉 Bearish Bias Justification:
Market Structure: A new lower high is forming, possibly signaling a short-term reversal or correction.
Heikin Ashi Candles: Smooth and elongated bearish candles indicate strength in the down move.
Volume Imbalance Theory: Price may need to fill this inefficiency before finding new direction.
✅ Possible Trading Implications:
Short Setup: Traders might look for short positions with targets inside the imbalance zone.
Buy Opportunity: Once the imbalance is filled, if bullish price action confirms, it could become a strong buy zone.
⚠️ What to Watch:
Look for confirmation (e.g., candlestick reversal or support forming) in the imbalance area before assuming reversal.
News/events (such as the economic calendar icons below) might impact price direction sharply.
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.