BOS
How to find THE BEST SHORT entry in a Range bounding market !!!!Welcome to this tutorial
This is my personal take from multiple resources and +20 hours of research and my own experience with trading in a range-bound market.
Range-bound trading or in this case shorting in a range-bound market contains 5 simple phases:
phase A
Range High + Range low forms which lead us to have a Range market.
phase B
Price tends to deviate above the Range High or simply sweep (upthrust) above it.
Reasoning and psychology behind that= in order to catch the liquidity above the range high and trap breakout traders who just opened a long above the high before nuking to the Range Low.
phase C
BOS happens in ltf , triggering a trend reversal.
Supply forms below the resistance, that's where we would like to build our short position later on.
phase D
ltf Range forms after the first sell-off, creating our base to revisit the supply that previously formed above it.
(Ideally, you can enter a scalp long trade in this phase and close right at the supply)
phase E
Price finally revisit the supply in order to test it as resistance. Any bearish price action at the supply or ltf BOS triggers our entry, targetting the Range Low as our take profit point.
There you can have a nice +4 R/R short setup, remember to place your invalidation above the newly made local high just to be safe from stop hunters ;)
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I will share 2 more topics about range bound market and how to trade it in near future so follow me on Tradingview so you don't miss them xoxo
🤓 🤓 MARKET STRUCTURE SHIFT! SMCMarket structure in Forex trading or price action is how many people take advantage of the markets. No indicators, and no volume. Because the market does not have a centralised exchange. Forex traders often swing trade the market based on the structure to take advantage of the opportunity.
Structural market change is broadly defined as a shift or change in the way in which a market or economy functions or operates.
I have tried my best to show you in the easiest possible way to look out for. Save this to your notes for future reference.
AUD/NZD: High-Vol Trendchannel breakAUD/NZD: High-Vol Trendchannel break
> month-long trendchannel broken to the downside
> Double top formation with first lower high inside of broken channel
> POC above current PX
> countertrend broken
> weekly high 2x rejected
> daily lows about to break
> little volume on way to tp
EUR/NZD: Bearish signs are increasingEUR/NZD: Bearish signs are increasing
> Double-top in the daily and H4 timeframes
> possible break of structure with current H4 candle
> first lower high and lower low outside of the upward trend shows change of sequence
> POC above current price levels
> Head and Shoulder formation
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EURGBP H4 SELL >>>>EURGBP Has Created A Huge Liquidity Pool Which the Market Should Needs to Grab. Above This Liquidity Pool there is A Strong H4 ORDER BLOCK AREA From Where we would see A Strong Selling Pressure . There is also Liquidity Under 3 Equal Lows so That's Why There are Many Confluences For This Sell Trade