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S&P 500: Rejection at Resistance and Potential Downside RisksThe chart shows a clear rejection from a key resistance zone around 6,150 points, highlighted by the red area. After an attempt to break through, the price faced strong bearish pressure, falling back below the 6,100 level. The current retracement has led the price to test the 50-day moving average (yellow), which has so far provided temporary support. However, breaking this structure could increase the risk of a sharper decline toward the intermediate support at 5,924, marked by the dashed yellow line. Recent macroeconomic releases, such as the decline in retail sales and weakening consumer confidence, are weighing on market sentiment, increasing pressure on stock indices. Additionally, uncertainty related to tariffs proposed by the U.S. administration is adding volatility, with investors showing signs of risk aversion. If the price fails to quickly recover the 6,100-6,150 area, the next bearish target could be the more structured support zone at 5,850-5,800, identified by the lower blue area. In summary, the technical structure reflects a moment of uncertainty with a clear rejection from the weekly resistance. A recovery above 6,100 could bring buyers back in control, while further weakness would open the door to new declines toward lower support levels.
CME_MINI:ES1!Long
by EdgeTradingJourney
1
Clarification on GOLDHello folks, Based on my chart, I'm not sure why gold rallied instead of taking sell-side liquidity. I expected gold to drop at least to 2886.33, but instead, it went up for no apparent reason. Most regular traders would say it's because it hit a support line, but for me, that's not a valid enough reason—big traders know what they're doing. I assume the 2886 area could be where big traders enter ahead of upcoming news events like NFP, but who knows... Alright, that's all, folks. Happy trading!
FOREXCOM:XAUUSDLong
by earfxn
Liquidity Sweeps: A Complete Guide to Smart Money Manipulation!🔹 What is a Liquidity Sweep? A liquidity sweep occurs when price temporarily moves beyond a key level, such as a previous swing high or low to trigger stop-losses and lure breakout traders into bad positions before reversing in the opposite direction. This is a classic smart money technique used to grab liquidity before initiating the real move. Financial markets need liquidity to function, and institutions (smart money) can’t enter or exit large positions without it. Instead of chasing price like retail traders, they manipulate price to engineered levels where liquidity is resting, allowing them to fill their orders without causing massive slippage. 🔹 How Liquidity Works in the Market To understand liquidity sweeps, it’s important to know where liquidity pools exist. These are areas where a high number of stop-loss orders and pending market orders are placed. Stop-loss liquidity: Traders set stop-losses above swing highs and below swing lows. When price hits these levels, stop-loss orders trigger as market orders, adding fuel for big moves. Breakout trader liquidity: Many traders enter buy trades when a high is broken and sell trades when a low is broken. Smart money often uses these breakout orders as liquidity before reversing the market. Essentially, liquidity sweeps allow smart money to take the opposite side of retail traders’ positions before moving the market in their favor. 🔹 Identifying Liquidity Sweeps on the Chart A valid liquidity sweep has three key components: 1️⃣ A Key Liquidity Zone: Look for well-defined swing highs and lows where stop-losses are likely sitting. Equal highs and equal lows are prime targets because many traders place stops there. Areas with high trading activity (volume profile levels, POCs) are also potential liquidity pools. 2️⃣ A Quick Price Spike Through That Level: Price briefly moves beyond a high or low, triggering stop-losses and luring breakout traders in the wrong direction. This move often happens suddenly, with a sharp candle wick or a short-term breakout that quickly fails. 3️⃣ An Immediate Reversal (Rejection): Price fails to hold above/below the liquidity level and reverses aggressively. Strong rejection candles like long wicks, bearish engulfing (after a buy-side sweep), or bullish engulfing (after a sell-side sweep) confirm the sweep. The stronger the rejection, the higher the probability that smart money just manipulated price to collect liquidity before the real move. 🔹 Types of Liquidity Sweeps 🔸 Buy-Side Liquidity Sweep (Bull Trap) Price spikes above a key high, triggering stop-losses from short sellers and inducing breakout buyers. If price fails to hold above that level and quickly reverses, it confirms the sweep. This is a signal that price is likely to drop as smart money absorbs liquidity before selling off. Example of a buy side liquidity sweep (BSL) 🔸 Sell-Side Liquidity Sweep (Bear Trap) Price dips below a key low, triggering stop-losses from long traders and trapping breakout sellers. If price fails to hold below that level and quickly reverses, it confirms the sweep. This is a signal that price is likely to rise as smart money collects liquidity before pushing higher. A liquidity sweep is not just a random wick, it’s a strategic price move designed to trap traders before a reversal. Example of a sell side liquidity sweep (SSL) 🔹 Why Liquidity Sweeps Matter Liquidity sweeps provide traders with some of the highest probability reversal signals because they: ✔ Show where institutions and smart money are active ✔ Confirm major support and resistance levels ✔ Help traders avoid false breakouts ✔ Provide excellent risk-to-reward setups Once a liquidity sweep is confirmed, price often moves aggressively in the opposite direction, as smart money has finished collecting liquidity and is now driving price toward their true target. 🔹 How to Use Liquidity Sweeps in Your Trading 1️⃣ Identify Key Liquidity Zones Mark previous swing highs and lows where traders are likely placing stop-losses. Pay attention to equal highs/lows and tight consolidations, as these areas tend to hold a lot of liquidity. Use volume profile tools to see where the highest liquidity clusters exist. 2️⃣ Wait for a Liquidity Sweep & Rejection Don’t enter just because price broke a high/low, wait for confirmation. A strong rejection candle (wick, engulfing pattern, pin bar, etc.) signals that the sweep was a trap. Lower timeframes (5m, 15m) can help confirm entry after a sweep happens on higher timeframes. 3️⃣ Combine with Other Confluences Liquidity sweeps are most effective when combined with: ✅ Fair Value Gaps (FVGs): Price often sweeps liquidity before filling an imbalance. ✅ Order Blocks: Smart money enters positions at order block levels after a sweep. ✅ Fibonacci Retracements: Sweeps often happen near the Golden Pocket (0.618 - 0.65). ✅ Volume Profile (POC): If a sweep happens near a Point of Control (POC), it adds extra confluence. The more confirmations you have, the higher the probability of a successful trade! 🔹 Common Mistakes Traders Make with Liquidity Sweeps Entering too early: A liquidity sweep needs confirmation. Wait for a clear rejection before trading. Ignoring higher timeframes: The strongest sweeps happen on 1H, 4H, and Daily charts. Lower timeframes can be noisy. Forgetting the invalidation rule: If price closes above/below the liquidity sweep level, the move may not be valid. Chasing price after a sweep: Always look for an optimal entry (retracement to a key level) rather than impulsively entering. 🔹 Advanced Tips for Trading Liquidity Sweeps 📌 Use Time-of-Day Analysis: Liquidity sweeps often occur before major sessions open (London, New York, etc.). Many sweeps happen during high impact news releases, be cautious. 📌 Look for Repeated Sweeps at the Same Level: If price sweeps liquidity multiple times without follow through, it increases the chance of a strong reversal. A double or triple sweep is a powerful confirmation that smart money is manipulating price before a real move. 📌 Use Liquidity Sweeps for Entry & Exit Points: Entering after a confirmed liquidity sweep can provide great risk-to-reward setups. Use liquidity sweeps as take-profit targets if price is approaching a key high/low, expect a sweep before reversal. 📌 Final Thoughts: Mastering Liquidity Sweeps Liquidity sweeps are one of the most powerful tools in a trader’s arsenal because they reveal smart money’s true intentions. By understanding how they work, traders can: ✅ Avoid being trapped by false breakouts ✅ Identify high-probability reversal points ✅ Follow smart money instead of fighting it Next time you see price breaking a high or low, don’t immediately assume it’s a breakout. Look for the liquidity sweep if it happens, it could be a game changer for your trading strategy. 🚀 Also, check out our Liquidity sweep indicator! __________________________________________ If you found this guide helpful or learned something new, drop a like 👍 and leave a comment. I’d love to hear your thoughts! 🚀 Make sure to follow me for more price action insights, free indicators, and trading strategies. Let’s grow and trade smarter together! 📈✨
KRAKEN:BTCUSDEducation
by TehThomas
USD/JPY: Liquidity Grab Below Weekly LowThe chart shows that the price has grabbed liquidity below the weekly low, potentially triggering a bullish reaction. Analyzing the current USD/JPY situation, recent economic data highlights bearish pressure on the dollar due to declining consumer confidence in the U.S. and expectations of Federal Reserve rate cuts, while the yen is strengthening on the back of more solid economic indicators. Technically, the price has rejected a key demand zone and remains below the psychological threshold of 150.00, which acts as a crucial resistance. If the price confirms a bullish structure on lower timeframes, we could see an upward move towards the 152.00-152.50 area, aligning with a supply zone and moving average confluence. However, a close below recent lows could invalidate this outlook, paving the way for a further drop toward the next support at 146.00.
Long
by EdgeTradingJourney
1
EUR/USD Faces Key Resistance Amid Liquidity Grab ExpectationsEUR/USD is undergoing a pullback after reaching a one-month high of 1.0528, closing at 1.04658 on February 24, marking a 0.22% decline from the previous day. The euro's recent strength was driven by post-election stability in Germany, where centrist parties formed a coalition government, boosting market confidence. However, bullish momentum has stalled near key resistance levels around 1.0530 and 1.0560, with the pair struggling to sustain gains above the 100-day simple moving average. From a technical standpoint, the price is approaching a significant supply zone, where a liquidity grab could occur before a potential downside move. Resistance in this area aligns with broader concerns over Germany's economic outlook and coalition negotiations, which could weaken the euro’s appeal. Meanwhile, the U.S. dollar, despite recent weakness due to declining consumer confidence, remains in a favorable position for a short-term recovery, adding further pressure on EUR/USD. If the pair fails to break through resistance, a rejection could trigger a decline toward 1.0400, with further downside potential extending to 1.0283. Conversely, if buyers manage to push past the liquidity zone, the next upside targets lie at 1.0530 and 1.0560.
Short
by EdgeTradingJourney
1
GBP/USD: Bullish Momentum Faces Key ResistanceGBP/USD has reached its highest point since mid-December at 1.2690, primarily driven by the weakness of the US dollar. The pair has shown strong momentum, and as long as it holds above the key support at 1.2520, analysts see potential for further upside toward 1.2725. Positive UK economic data, including better-than-expected retail sales and inflation figures, have reinforced a bullish outlook for the pound. However, minor retracements have been observed, with slight declines following recent gains, such as the 0.05% drop on February 24. Market volatility remains a factor, with geopolitical tensions and fluctuating commodity prices impacting the dollar’s strength. From a technical standpoint, the price is currently testing a resistance zone while approaching key moving averages, which could act as dynamic resistance. The presence of supply zones above suggests that the pair could face selling pressure before a potential continuation higher. If the price fails to sustain above the resistance area, a retracement toward the 1.2520 level and possibly deeper into the 1.2400 region could materialize. Despite the recent bullish momentum, caution is warranted due to broader market uncertainties, and future movements will depend on economic indicators from both the UK and the US, as well as overall market sentiment.
Short
by EdgeTradingJourney
1
XRP price at a crucial decision point – massive breakout coming?XRP is currently trading at a critical support level, sitting within a 4-hour Fair Value Gap (FVG) around the $2.50 mark. This zone has proven to be a strong demand area, with price reacting and bouncing from it multiple times. However, XRP is now approaching a major trendline resistance, meaning a huge move is coming whether bullish or bearish depends on what happens next! 🔥 The Key Levels You Need to Watch Right Now 🟢 Bullish Scenario – A Breakout Could Send XRP Soaring! The black descending trendline has been a strong resistance for XRP, capping price movement to the upside. If price breaks above this trendline and successfully retests it as support, this would confirm a bullish breakout, likely leading to a surge in price. A successful breakout could see XRP rally towards $2.70, $2.80, and possibly even higher, as there is less resistance above these levels. 🔴 Bearish Scenario – FVG Breakdown Could Spell Trouble! The 4-hour Fair Value Gap (FVG) around $2.50 is a major support level, and price has already shown significant reactions here. However, if XRP fails to break above the trendline and instead falls below the FVG zone, this could lead to further downside pressure. A clean break below $2.50 could send XRP tumbling toward lower support levels, potentially $2.40 or even lower. 🚀 What’s Next for XRP? A Big Move is Coming! With price consolidating between these key levels, a breakout is inevitable. The bullish momentum will be confirmed if price breaks and retests the descending trendline as support. However, if XRP loses the FVG zone, then we could be looking at a shift in trend toward bearish continuation. Final Thoughts – Get Ready for Volatility! Right now, XRP is at a make-or-break moment. The next move will likely set the tone for the coming days. Keep an eye on how price interacts with these levels—whichever side breaks first will determine XRP’s next big move! __________________________________________ Thanks for your support! If you found this idea helpful or learned something new, drop a like 👍 and leave a comment—I’d love to hear your thoughts! 🚀 Make sure to follow me for more price action insights, free indicators, and trading strategies. Let’s grow and trade smarter together! 📈✨
KRAKEN:XRPUSD
by TehThomas
EUR/GBP: Key Support Test Amid Bearish PressureThe analysis of EUR/GBP as of February 24, 2025, presents an interesting technical outlook. The price is testing a key support area around 0.8297 after a modest recovery from the 0.8271 lows. The current setup suggests a potential reaction in this zone, with the possibility of a technical rebound towards higher levels or a more significant bearish breakdown. From a technical perspective, several key areas stand out: the upper resistance in the 0.8440-0.8460 range represents a critical level for a bullish recovery, while the lower support around 0.8265-0.8240 could act as a catalyst for further downside momentum if broken. Moving average analysis indicates persistent bearish pressure, with both the 50 and 200-period moving averages sloping downward. This reinforces the idea that, despite recent rebounds, the dominant trend remains bearish in the medium term. From a macroeconomic standpoint, expectations regarding the UK and Eurozone economic outlook are shaping the pair's direction. UK inflation is showing signs of recovery, providing some support for the pound, but uncertainties related to economic growth and Bank of England policies could hinder a sustained strengthening of the British currency. On the other hand, the Eurozone is facing challenges linked to growth stagnation, and the ECB may maintain an accommodative policy to stimulate the economy. These factors create an unstable balance that could lead to heightened volatility in the coming days. Technical forecasts suggest two possible scenarios: a temporary rebound towards 0.8340-0.8360 before another test of the lows or a direct break below 0.8265, which could open the door for a decline towards 0.8240-0.8220.
Short
by EdgeTradingJourney
1
GOLD| Approaching Historic Highs Amid Geopolitical UncertaintyThe analysis of XAU/USD highlights a strong bullish trend, closing at approximately $2,939.41 on February 20, 2025, marking a 0.23% increase from the previous day. The recent high of $2,946.83 on February 19 indicates continued positive momentum, driven by geopolitical tensions, inflation concerns, and fears of potential trade wars, all of which have strengthened gold’s status as a safe-haven asset. The current momentum has pushed prices toward historic levels, with the potential to surpass $3,000, supported by a weaker U.S. dollar and declining U.S. yields. The chart shows a key resistance zone around $2,960, with a potential retracement towards the $2,880 area, identified as the first major support level. The current price action suggests a possible pullback before another breakout attempt. If the price consolidates above $2,900, it could accelerate towards new highs, while a break below $2,880 may drive the price toward the next support level around $2,840. The overall outlook remains bullish, with investor interest fueled by global uncertainties and the increasing demand for gold as a hedge against economic risks.
OANDA:XAUUSDShort
by EdgeTradingJourney
1
GBP/NZD Analysis: Market Uncertainty Amid Key Technical LevelsThe analysis of GBP/NZD shows recent volatility, with a close at 2.20571 on February 19, 2025, slightly down from the previous day, indicating a phase of market indecision. The previous trend saw moderate progression from February 16 to 18, supported by an increase in UK GDP, which temporarily strengthened the Pound. However, the absence of new economic data left the pair exposed to market sentiment, contributing to the decline on February 19. From a technical perspective, the chart highlights a strong resistance area between 2.21770 and 2.22180, a level that has rejected the price multiple times, suggesting that without a decisive breakout above this zone, the bullish trend may weaken. Conversely, a significant support area is located around 2.17616, a level that has already provided a positive reaction, pushing the price back up. The current price action shows a consolidation phase between these two key levels, with a recent structure of higher lows that could indicate an accumulation attempt before a potential bullish breakout. If the price manages to break above the upper resistance decisively, the next target would be around the recent highs in the 2.24000 area. On the other hand, a break below the 2.17616 support could trigger a decline towards the next key level at 2.15000, where an interesting liquidity zone is present. The combination of the recent positive GDP data and a more cautious market sentiment leaves the pair in a state of uncertainty, with a key reaction expected in the coming days depending on the holding or breaking of the main technical levels.
Short
by EdgeTradingJourney
1
USD/JPY: Bearish Momentum and Key Support TestThe USD/JPY analysis as of February 18, 2025, shows a clear bearish structure, with the price breaking below key support levels, particularly around 152.70, which aligns with the 200-day moving average. The February 17 close at 151.456 confirms the downward trend after the recent high of 154.79 on February 12, highlighting the weakness of the US dollar against the strengthening Japanese yen. The yen’s appreciation was driven by Japan’s unexpectedly strong GDP data, which showed an annualized growth of 2.8%, far exceeding expectations and fueling speculation of a potential rate hike by the Bank of Japan. In contrast, the US dollar has been under pressure due to weak retail sales data and a general lack of bullish catalysts. The chart setup highlights a key demand zone between 150.50 and 151.00, where the price is showing an initial reaction, suggesting a possible technical rebound. However, the overall structure remains weak, and unless the price can stabilize above 152.50-153.00, the risk of further downside remains high. The next significant resistance lies between 154.50 and 156.00, an area with concentrated sell orders and a potential reversal point in case of recovery. Conversely, a break below 150.50 would open the way toward 148.00 and even lower levels, with a critical support zone around 146.00. The short-term trading range could remain between 151.00 and 155.00, with strong dependence on upcoming macroeconomic developments, particularly statements from the Bank of Japan and economic updates from the United States.
Long
by EdgeTradingJourney
1
GBP/JPY: Uncertainty and Bearish PressuresGBP/JPY has shown a volatile trend in recent sessions, with a combination of ups and downs highlighting a phase of uncertainty. The last closing on February 15, 2025, at 191.618 marks the beginning of a bearish trend after the doji on February 14. This movement reflects a complex dynamic, where macroeconomic and technical factors play a decisive role in price direction. The recent rebound was supported by positive UK GDP data, which helped the pound recover from bearish pressures over the past months. Notably, on February 12, a reversal of the bearish trend occurred, with GBP/JPY starting to regain ground due to an improvement in market sentiment. Additionally, the strengthening of US inflation negatively impacted the Japanese yen, pushing GBP/JPY up by 1.22% around February 12, driven by a weaker yen following the increased strength of the US dollar. However, despite these positive elements, the Bank of England’s monetary policy has introduced uncertainty, with a dovish stance fueling pressure on the pound. The interest rate cut has raised concerns about further depreciation, negatively affecting GBP/JPY. Added to this is the earlier decline in early February, triggered by disappointing UK economic data and expectations of further BoE interventions, which contributed to a widespread bearish sentiment. From a technical perspective, the price is currently in a consolidation phase between 187.610 and 193.120, with a structure suggesting a possible expansion of volatility in the coming weeks. The key resistance at 193.120 represents a critical obstacle for a potential continuation of the bullish trend, while support at 187.610 remains the main level to watch in case of renewed bearish pressure. A breakout above the 193.50 threshold could confirm further pound strengthening, while a break below 188.00 could reopen scenarios of weakness. With a combination of technical and macroeconomic factors in play, GBP/JPY’s trend remains subject to upcoming BoE decisions and the evolution of global economic conditions, making it crucial to monitor upcoming economic releases to determine the market’s direction.
Short
by EdgeTradingJourney
3