🟢 VIX – “Liquidity Pool Bounce & Reversal Setup”
📅 Date: April 22, 2025
⏰ Multi-Timeframe Analysis (12h, 1D, 1h, 30m, 5m)
🔎 Global Context:
The Volatility Index (VIX) is reacting to a clear institutional liquidity zone (blue area) across multiple timeframes (12h, 1D, 1h), aligning with a mean reversion move following the explosive rally earlier this month. We’re seeing multiple signs of a potential bullish reversal:
🔍 Technical Analysis & Justification:
📌 Wyckoff & Smart Money Concepts (SMC):
On 30m and 1h charts, we observe several CHoCH and BOS events suggesting a transition from redistribution into accumulation.
The latest bearish move failed to break the weak low zone (26.345), indicating a liquidity grab trap.
📌 Fibonacci & Moving Averages:
Price touched the 78.6%–88.6% retracement from the previous bullish leg.
EMAs 8/21 (Orange/Blue) are about to cross bullish on 5m and 30m – a typical trigger for a new impulsive move.
EMA200 (White) still hovers above – likely target of the first bullish push.
📌 Volume Profile (implicit):
Most of the recent consolidation occurred in the 27.00–27.40 imbalance zone, which now acts as a magnet for price during retracement.
📌 Liquidity & Order Flow Concepts:
The 26.345–26.600 range served as a Weak Low and was swept clean – classic liquidity trap behavior.
📈 Trade Parameters:
🟢 Entry (Buy): 26.795
🔒 Stop-Loss (SL): 26.345 (below last liquidity sweep)
🎯 Take Profit 1 (TP1): 27.390 (inefficiency zone + EMA200)
🎯 Take Profit 2 (TP2): 28.150 (1h/30m order block)
🧮 Risk-Reward Ratio (RR):
TP1: ~1.6
TP2: ~3.0
📊 Confidence Level: ⭐⭐⭐⭐ (High-probability setup)
🧠 Strategic Summary:
This is a classic reversal play based on liquidity absorption and structural shift (CHoCH), supported by multi-timeframe alignment. A bullish engulfing or strong reaction inside the blue zone confirms the entry bias. If price breaks above 27.00 with volume, momentum may carry it towards 28.00+ swiftly.
⚠️ Risk Disclaimer: Trading involves risk. Only trade with capital you can afford to lose. Always manage your exposure wisely.
💬 What do you think of this setup? Do you see confluence with your strategy? Let’s discuss below! 👇
📅 Date: April 22, 2025
⏰ Multi-Timeframe Analysis (12h, 1D, 1h, 30m, 5m)
🔎 Global Context:
The Volatility Index (VIX) is reacting to a clear institutional liquidity zone (blue area) across multiple timeframes (12h, 1D, 1h), aligning with a mean reversion move following the explosive rally earlier this month. We’re seeing multiple signs of a potential bullish reversal:
- Previous lows + demand zone confluence
- Multiple CHoCH (Change of Character) events on lower timeframes
- Implied divergence from equities (not shown here, but inferred)
- Strong rejection from the institutional block (26.345–26.600)
🔍 Technical Analysis & Justification:
📌 Wyckoff & Smart Money Concepts (SMC):
On 30m and 1h charts, we observe several CHoCH and BOS events suggesting a transition from redistribution into accumulation.
The latest bearish move failed to break the weak low zone (26.345), indicating a liquidity grab trap.
📌 Fibonacci & Moving Averages:
Price touched the 78.6%–88.6% retracement from the previous bullish leg.
EMAs 8/21 (Orange/Blue) are about to cross bullish on 5m and 30m – a typical trigger for a new impulsive move.
EMA200 (White) still hovers above – likely target of the first bullish push.
📌 Volume Profile (implicit):
Most of the recent consolidation occurred in the 27.00–27.40 imbalance zone, which now acts as a magnet for price during retracement.
📌 Liquidity & Order Flow Concepts:
The 26.345–26.600 range served as a Weak Low and was swept clean – classic liquidity trap behavior.
📈 Trade Parameters:
🟢 Entry (Buy): 26.795
🔒 Stop-Loss (SL): 26.345 (below last liquidity sweep)
🎯 Take Profit 1 (TP1): 27.390 (inefficiency zone + EMA200)
🎯 Take Profit 2 (TP2): 28.150 (1h/30m order block)
🧮 Risk-Reward Ratio (RR):
TP1: ~1.6
TP2: ~3.0
📊 Confidence Level: ⭐⭐⭐⭐ (High-probability setup)
🧠 Strategic Summary:
This is a classic reversal play based on liquidity absorption and structural shift (CHoCH), supported by multi-timeframe alignment. A bullish engulfing or strong reaction inside the blue zone confirms the entry bias. If price breaks above 27.00 with volume, momentum may carry it towards 28.00+ swiftly.
⚠️ Risk Disclaimer: Trading involves risk. Only trade with capital you can afford to lose. Always manage your exposure wisely.
💬 What do you think of this setup? Do you see confluence with your strategy? Let’s discuss below! 👇
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.