VIX – “Liquidity Pool Bounce & Reversal Setup”🟢 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:
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! 👇
