TWLO, rebalance to FVG, then make a bullish liquidity run
So, my current analysis is built around a bullish bias on this chart. I’ve identified a few key elements that are lining up to potentially signal a strong move upward:
Bullish Block Breaker: First, I've identified a bullish block breaker. This occurred when the price broke above a significant resistance level, indicating a shift in market sentiment from bearish to bullish. This breakout suggests that buyers have taken control, and it's often a sign of a potential trend reversal or continuation to the upside.
Fair Value Gap (FVG): After the bullish block breaker, the price left behind a Fair Value Gap. This gap is an area of price imbalance, where the market moved too quickly and didn't allow for a balanced trading range. I'm looking for the price to potentially retrace into this FVG, as the market often seeks to 'rebalance' itself by filling this gap. This rebalancing process can provide a strategic entry point.
Bullish Order Block with 50% Retracement: Within the area where the FVG resides, I've also identified a bullish order block. This is an area of previous consolidation before the strong upward move. What adds confluence here is the 50% retracement level within this order block. This 50% level is crucial because it often represents a fair value area within the order block itself. Institutions and smart money traders often look to add to their positions around this level. So, if the price can hold above this 50% mark within the order block, it significantly increases the chances of a bounce.
Confluence Zone: The combination of the FVG, the bullish order block, and the 50% retracement level creates a strong confluence zone. This area serves as a potential support level where I expect buyers to step in if the bullish bias is to continue.
Looking for a Liquidity Run: After potentially rebalancing in the FVG and finding support within the order block at the 50% retracement level, I’ll be looking for the price to make a move towards a liquidity run. The target here would be key liquidity zones, such as previous swing highs or resistance levels. These are areas where stop-loss orders from short sellers or breakout orders from buyers are likely concentrated, acting as a magnet for the price.
Bullish Block Breaker: First, I've identified a bullish block breaker. This occurred when the price broke above a significant resistance level, indicating a shift in market sentiment from bearish to bullish. This breakout suggests that buyers have taken control, and it's often a sign of a potential trend reversal or continuation to the upside.
Fair Value Gap (FVG): After the bullish block breaker, the price left behind a Fair Value Gap. This gap is an area of price imbalance, where the market moved too quickly and didn't allow for a balanced trading range. I'm looking for the price to potentially retrace into this FVG, as the market often seeks to 'rebalance' itself by filling this gap. This rebalancing process can provide a strategic entry point.
Bullish Order Block with 50% Retracement: Within the area where the FVG resides, I've also identified a bullish order block. This is an area of previous consolidation before the strong upward move. What adds confluence here is the 50% retracement level within this order block. This 50% level is crucial because it often represents a fair value area within the order block itself. Institutions and smart money traders often look to add to their positions around this level. So, if the price can hold above this 50% mark within the order block, it significantly increases the chances of a bounce.
Confluence Zone: The combination of the FVG, the bullish order block, and the 50% retracement level creates a strong confluence zone. This area serves as a potential support level where I expect buyers to step in if the bullish bias is to continue.
Looking for a Liquidity Run: After potentially rebalancing in the FVG and finding support within the order block at the 50% retracement level, I’ll be looking for the price to make a move towards a liquidity run. The target here would be key liquidity zones, such as previous swing highs or resistance levels. These are areas where stop-loss orders from short sellers or breakout orders from buyers are likely concentrated, acting as a magnet for the price.
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