GBPJPY: The Head & Shoulders TrapDon't be fooled by this pretty head and shoulders pattern because it is most likely a trap to lure sellers into the market before price bounces from a demand planted below it.
Once the fair value gaps have been filled, the price is likely to utilise the demand to travel to the remaining imbalance at the top of the move.
Do you think this is likely? 🚀
Imbalance
GBPUSD: Pick Your Side 🚨Price continues to travel within a tight range.
The market makers have done a great job of setting up liquidity to be hunted during the US CPI data at 13:30 PM (GMT+1) today.
Both the supply and demand zones we have been working with over the last few days have become weaker and weaker.
The question is what side will go first?
We will need to study the London session to get a clear picture of where price is likely to travel during the news event - React don't predict.
What do you guys think? Let me know in the comment section below. 💬
POTENTIAL SELL ON US30Price has potential to move lower from the retest of the minute 5 timeframe sell zone, wait for bearish price action to confirm the move.
⁉️ How to identify imbalances? ‼️ Imbalances are also known as inefficiencies or FVG (Fair Value Gaps) these are periods in price action whereby means of lopsided order flow, which create porous wakes or gaps in fills. The market will slip to the only available trade levels as a result of thin liquidity and these voids in liquidity will be revisited at a later stage. The market will seek to fill in any missing gaps or missed levels on a trade. Impulse price swings are typically seen with this voids in liquidity. In simple terms imbalances are gaps in the market and the market will always seek in to close or fill those gaps.
US30 POTENTIAL SHORTSPrice has a potential for the downside upon the retest of the previously formed bearish orderblock.Wait for your own confirmations to confirm the move.
BTC important information about the retracementIts important for BTC to hold the Uptrend 4HR.
BTC is still bullish as long as it holds the uptrend.
There is a possibility that BTC will test liquidity to the downside and fill some imbalance in the market.
it is then important for BTC to regain the uptrend and hold the bottem line then BTC is still bullish for me for the mid term.
For now BTC is in a perfect retracement so nothing to worry about.
Ps: No financial advice.
200 PIP move incoming?Hey Traders,
Looking on the 4H chart for NZD/USD here, we've got a very interesting setup. As you can see we've had three solid bullish moves as marked by the purple rectangles, each supplying a solid demand area. The bottom 4 hour demand area is an area which I believe this price will come back down to and will bounce accordingly. You can see the solid bull run we have had from that area, yes, we did have one of the early candles in that move come back down and test that demand but I want to see full price action come back in and test that. If we do manage to get down to 0.677, I will also be looking to take this long from there.
You can see that we filled supply at the top of the chart, we have just taped in there as outlined by a little blue circle on the wick. Once we taped up in there, we had a solid bearish push indicating there may be some more bearish power coming into play.
While I'm not looking to just enter blindly when we come up to this 4 hour weak supply. I do want to see a solid bounce down on the 1H or 15M chart. As usual, I want to see a trend line break, I want to see some structure breaks, I want to see a solid indication that we are going to head lower from this area before taking the trade. We have some pretty obvious take profit points on the chart. Overall, I'm looking for a 200pip move over the next week. It will be interesting to see how it performs given NZD usually coincides with the AUD and I'm expecting Aussie dollar strength over the future, so keep an eye on this. Let's see how it plays out and I'll keep you updated.
If you have any questions, please ask away in the comments!
Hypos SPX 4-4-22Hypos on SPX:
1. Primarily looking to see if price pushes into the D-FVG to fill the imbalance and continue to push down. As it stands there hasn't been much movement and price is hanging just below the FVG(L) by about 10 points. Also we've traded in a about a 25 point range and that's about it all night with the opening sitting at about 50%.
2. Second hypo, we drop down into the daily wick and hold to buy in that wick range around 4525.05. If this happens then I could see us rejecting here to move up further into the FVG or continue to higher to take out the last high.
Consolidation between Supply and DemandAt the point A, the imbalance happened from the base (equilibrium). The price shot high quickly to the point B. After that the price retrace to the point C. The price rose again and broke the swing high of the B. and make the higher high. After that the price got down and broke the low of C.
The price dropped slower than the rally of A. So the projection of the drop is to the point of D where the demand zone lies. After that, the price will rise (at least) to the level of B creating pattern Quasimodo.
For your information, Quasiomodo is like head and shoulders but with an additional requirement of left shoulder. The left shoulder should get down and break the low of the right shoulder.
ICT IMBALANCE / FVG / LIQUIDITY VOIDLiquidity void, Fair Value Gap, Imbalance... These terms are interchangeable.
As a Charter Member ill tell you what I've shown here, is a basic depiction, as I got asked a question on what is an imbalance?
An imbalance, is an imbalance in price, where price has NOT efficiently delivered orders in the market, price will like to revisit these areas, of imbalance, as seen here. The diagram on the left depicts the ideal model of what an imbalance is, the chart on the right is an in time example.
if you notice one of these getting filled, at a place where you are bearish/bullish... well.... there is your trade!
Reversal potential when the price heads the demand zoneDemand Zone C is not strong because the imbalance is messy. So the price would break the zone.
The recent price shows potential outside bar (engulfing candlestick).
Demand zone B is actully tested by the pullback (pin bar). But it still has high probability because it is backed up by the lower demand.
GBPNZD ImbalanceHey guys,
I'm not seeing a whole lot of stuff out in the market at the moment that I really want to trade, I've been trading some fundamentals on the Aussie dollar for the past few days and on the outer timeframes, looking at all the charts I'm really not seeing anything grab me. One thing I have noticed is this massive imbalance here on the GBPNZD pair. If we do manage to get up into this supply area, however long that takes, we definitely can look to go short here. As you can see, the just pure mass of shorting and selling that happened at this time, I think there will be a lot of orders that bounces back off of this price.
If you guys have any ideas out there in the market at different pairs, you're looking out on the different time frames do let me know. I'm struggling to see a whole lot of opportunities. Market tends to be moving one way and not so much in a wavy format as usual, which doesn't coincide with my strategy. But that happens sometimes. Happy trading guys!
NZDCAD Analysis - March 27, 2022So I did a little charting and (top-down) analysis on NZDCAD. It's not a currency pair I am trading personally, but I used it for practice purposes only...
NZDCAD Analysis - March 27, 2022
Starting from the Weekly timeframe price has just retested a Supply area (0.88880 to 0.87690). I also can see an EQL looking at the current swing low that equals the low of March 11 of 2021 at 0.83425.
Scaling down then to the Daily timeframe price never closed above the 0.87690 level (low of the weekly Supply area), only wicked trough attempting to make a higher-high but never did.
On the 4h timeframe, I spotted another Supply area (Green) within the Weekly Supply area (Gray).
Although the 4h timeframe shows Bullish bias looking at recent price action by breaking structure to the upside, one can clearly see that price reacted pretty accurately from those "intertwined" Supply areas and has started to make a lower-high since. Also, when looking closer, I spotted a Demand area (Purple) that was the last indecision candle before the impulsive move right into the Supply area (Green). Thus leaving a huge imbalanced price gap behind to fill.
Now that I have a pretty good idea that the market bias is (turning) Bearish, aiming to close the imbalanced price area, I will go to a lower time frame and set out some key levels for possible shorts.
From the 1h timeframe perspective, we are ranging. I marked out some key levels on the chart based on this timeframe and then refined those levels on lower timeframes, keeping in mind the levels, structure from the higher timeframes.
When combining all the timeframe levels it looks like this.
In my humble opinion price will go for the liquidity below since there is also an in-efficient price action below it, with above that area an imbalanced price. Looking at the price action from the range high, it looks pretty efficient making those lower highs and lower lows, respecting each lower high on the way down. That's why my focus is more on the imbalance to the down instead of the one on the upside.
I think the price will go for the refined zone below eventually because:
- Major trend is a downtrend on higher timeframes
- Price made a huge impulsive move to the upside and tested a weekly Supply area leaving an imbalance price area behind
- Price has retested and rejected multiple times the weekly Supply area where the big impulsive move from earlier ended and never closed above it
- The substructure of the higher timeframe "swing" is making lower highs and lower lows on the lower timeframe
- There are multiple imbalanced price areas to the downside