END OF DISTRIBUTION (SIDEWAY) TRENDS
This chart shows the XAUUSD on the 1-hour timeframe and incorporates various Smart Money Concepts (SMC) elements like market structure, liquidity zones, and potential price projections.
Key Observations:
Market Structure:
Higher Highs (HH) and Lower Highs (LH): The chart shows a series of HHs and LHs, indicating that the price is oscillating between bullish and bearish phases.
Break of Structure (BOS): Several BOS points are marked, signaling shifts in market direction. These are crucial because they often lead to a change in trend or indicate where liquidity is likely to be targeted.
Change of Character (CHOCH): This signifies a potential shift in market sentiment from bullish to bearish
Liquidity Zones:
Buy-Side Liquidity: The chart shows a zone above the current price, marked with a potential target for the bulls. This is where buy orders may be stacked, creating a target for the price.
Sell-Side Liquidity: There's a significant zone below the current price, indicating an area where sell stops might be placed, creating a potential target for bears.
Dynamic Support Line:
The blue trendline acts as a dynamic support, indicating that the price has respected this level multiple times. A break below this line could signal a bearish continuation.
Price Projections:
Bullish Scenario: If the price respects the dynamic support and breaks above the last HH, it could target the buy-side liquidity area near 2,512.
Bearish Scenario: A break below the dynamic support and the sell-side liquidity zone could lead to a sharp decline toward the next significant support level around 2,354.
Potential Trade Setups:
Long Setup:
Entry: Upon a bullish break of structure and a clear break above the previous HH, signaling strong buying momentum.
Target: The buy-side liquidity area around 2,512.
Stop Loss: Below the dynamic support line or the last LH.
Short Setup:
Entry: If the price breaks below the dynamic support and the last HL, indicating a shift towards bearish momentum.
Target: The sell-side liquidity area around 2,440 or lower towards 2,354.
Stop Loss: Above the previous LH or the dynamic support line.
Summary:
The chart suggests that the market is currently at a critical juncture. The price could either break upwards, targeting the buy-side liquidity, or break downwards, heading towards the sell-side liquidity. Monitoring the break of the dynamic support and BOS/CHOCH levels will be key in determining the next directional move.
Key Observations:
Market Structure:
Higher Highs (HH) and Lower Highs (LH): The chart shows a series of HHs and LHs, indicating that the price is oscillating between bullish and bearish phases.
Break of Structure (BOS): Several BOS points are marked, signaling shifts in market direction. These are crucial because they often lead to a change in trend or indicate where liquidity is likely to be targeted.
Change of Character (CHOCH): This signifies a potential shift in market sentiment from bullish to bearish
Liquidity Zones:
Buy-Side Liquidity: The chart shows a zone above the current price, marked with a potential target for the bulls. This is where buy orders may be stacked, creating a target for the price.
Sell-Side Liquidity: There's a significant zone below the current price, indicating an area where sell stops might be placed, creating a potential target for bears.
Dynamic Support Line:
The blue trendline acts as a dynamic support, indicating that the price has respected this level multiple times. A break below this line could signal a bearish continuation.
Price Projections:
Bullish Scenario: If the price respects the dynamic support and breaks above the last HH, it could target the buy-side liquidity area near 2,512.
Bearish Scenario: A break below the dynamic support and the sell-side liquidity zone could lead to a sharp decline toward the next significant support level around 2,354.
Potential Trade Setups:
Long Setup:
Entry: Upon a bullish break of structure and a clear break above the previous HH, signaling strong buying momentum.
Target: The buy-side liquidity area around 2,512.
Stop Loss: Below the dynamic support line or the last LH.
Short Setup:
Entry: If the price breaks below the dynamic support and the last HL, indicating a shift towards bearish momentum.
Target: The sell-side liquidity area around 2,440 or lower towards 2,354.
Stop Loss: Above the previous LH or the dynamic support line.
Summary:
The chart suggests that the market is currently at a critical juncture. The price could either break upwards, targeting the buy-side liquidity, or break downwards, heading towards the sell-side liquidity. Monitoring the break of the dynamic support and BOS/CHOCH levels will be key in determining the next directional move.
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.