Exploring GBPCAD's Current Markdown PhaseTraders, pay close attention! The GBPCAD pair is currently showing clear signs of entering the markdown phase within a distribution pattern. 🇬🇧🇨🇦
In the context of the Wyckoff distribution, the markdown phase is a crucial stage where the price undergoes a controlled decline after prolonged accumulation. This phase often signifies a shift in market sentiment from bullish to bearish.
Observing the GBPCAD chart, you'll notice a gradual downtrend in prices with intermittent consolidations. This price action suggests that smart money, which accumulated positions during the accumulation phase, is now distributing their holdings.
Key indicators, such as decreasing trading volumes and consistent lower highs, align with this markdown narrative. Traders should be cautious of potential breakdowns below key support levels as they can accelerate the markdown process.
It's essential to stay vigilant during this phase. Smart traders may consider shorting opportunities, while others might tighten stop-loss orders on existing long positions. Remember, successful trading is about adaptability and reading the market's language.
Stay tuned for further insights and updates on GBPCAD as we navigate this intriguing markdown phase. 🚀📉 #TradingAnalysis #GBPCAD #MarkdownPhase #MarketInsights
Liquidity
LIQUIDITY MATTERS! Global liquidity vs #BitcoinLook at how the bullish green arrows and bearish red arrows show how global liquidity correlates HEAVILY with the direction of Bitcoin. T
You don't have to be a genius to see how beautiful this correlation is.
And how sensitive #BTC is to excess capital in the system.
As a risk on asset
When ppl have easy money to gamble with , a portion of that ends up in the #Crypto markets.
Currently you can see how aggressive the withdrawal of liquidity is across the globe
In the USA, EU, China & Japan.
How to trade Liquidity Sweeps 🌊 Trading liquidity sweeps 🌊 and identifying fake liquidity grabs 🕵️♂️ can be valuable skills for traders. These strategies involve capitalizing on market inefficiencies and understanding how institutional traders and algorithms influence price movements. In this guide, we'll explore what liquidity sweeps and fake liquidity grabs are and how to trade them effectively.
Understanding Liquidity Sweeps:
A liquidity sweep occurs when a trader executes a large market order that "sweeps" through the order book, clearing out available liquidity at various price levels. These sweeps often signal strong buying or selling interest, potentially leading to significant price moves.
Identifying Fake Liquidity Grabs:
Fake liquidity grabs 🎭 are market manipulation techniques used to deceive traders. Market makers or large players might place large orders on the order book to give the illusion of significant interest at a specific price level. However, they often cancel these orders before they get executed, leading to sudden reversals in price.
Trading Liquidity Sweeps:
Monitor Order Flow: Keep an eye on order flow and trade volume to identify sudden surges in trading activity. Liquidity sweeps are often accompanied by spikes in volume.
Identify Key Levels: Look for important support or resistance levels where liquidity sweeps are likely to occur. These levels can be based on technical analysis, such as previous highs or lows.
Entry and Stop-loss: Enter a trade when you spot a liquidity sweep that confirms your bias. Set stop-loss orders to manage risk in case the market moves against you.
Take Profits: Take profits when the market reacts as expected, but be prepared for quick price reversals. Liquidity sweeps can be followed by retracements.
Trading Fake Liquidity Grabs:
Be Cautious: Approach price moves driven by apparent liquidity grabs with caution. These moves can be short-lived.
Confirm Price Action: Wait for confirmation of the direction after the fake liquidity grab. Look for signs that real market sentiment is driving the price.
Risk Management: Place stop-loss orders to protect your capital in case the market reverses quickly. Avoid chasing the initial price move.
Use Additional Indicators: Combine your analysis with other technical indicators or market sentiment tools to increase your confidence in your trading decisions.
Conclusion:
Trading liquidity sweeps and fake liquidity grabs can offer opportunities for profit, but they also come with risks. It's essential to have a clear strategy, strict risk management rules, and the ability to adapt to rapidly changing market conditions. As with any trading strategy, practice and experience will help refine your skills in identifying and capitalizing on these market dynamics. 🚀📈🌊
📈📊 Detecting Liquidity: Pivot Points and Trading ReversalsGreetings, fellow traders! Today, let's delve into the fascinating world of liquidity, pivot points, and how they can be essential elements in your trading strategy. Understanding the relationship between these factors can provide you with valuable insights into potential price reversals and market sentiment. 💡📈
🤔 What is Liquidity?
Liquidity refers to how easily and quickly an asset can be bought or sold without significantly affecting its price. In the context of trading, liquidity often clusters at specific price levels, creating zones where many orders are concentrated. These zones can act as critical points of interest for traders.
🔄 Pivot Points and Liquidity:
Pivot points are technical indicators calculated from previous price data, typically using the high, low, and close prices. They provide potential support and resistance levels, but they also reveal where liquidity might accumulate.
🔍 Liquidity Pools:
Liquidity often pools around pivot points, creating liquidity pools. These pools represent price levels where a large number of buy and sell orders are clustered. Traders pay close attention to these levels as they can signal significant price reactions.
🚀 Trading Liquidity and Reversals:
Here's how you can leverage liquidity and pivot points in your trading strategy:
Identify Pivot Points: Use technical analysis tools to identify pivot points on your chart. There are various pivot point calculation methods, such as Standard, Fibonacci, or Camarilla. Choose the one that aligns with your trading style.
Focus on Confluence: Look for confluence between pivot points and other technical indicators, such as trendlines, moving averages, or RSI. When multiple factors align at a specific price level, it strengthens the significance of that level.
Observe Liquidity Zones: Pay attention to areas where liquidity is concentrated. These zones can act as magnets for price action. When price approaches a liquidity pool, it's more likely to experience significant movement.
Spotting Reversal Signals: Reversals often occur near pivot points, especially if there's a confluence of factors. Look for candlestick patterns, divergence in oscillators, or other reversal signals to confirm a potential change in trend direction.
Risk Management: Always implement proper risk management strategies. Set stop-loss orders to limit potential losses if the market moves against your position.
🌐 Conclusion:
Understanding liquidity and pivot points can provide you with a unique perspective on market dynamics. By identifying liquidity pools and watching for reversal signals around pivot points, you can make more informed trading decisions. However, remember that no strategy is foolproof, and risk management is paramount. Keep refining your skills and adapt to ever-changing market conditions. 🔄📈
GA LongA demand zone was created on August 14th on the 4hr timeframe, where price showed strong bullish volume to the upside. And as usual, smart money took out the liquidity of SLs places as shown on the chart. I patiently waiting for smart money to bring price back to the main 4hr demand zone and it did. However, it was in consolidation for a long time and it seemed as if there was a structure that was struggling to be broken(as shown on the chart).
On September 5th at 1AM est, price finally closed above the structure with a high volume candle on the 1HR chart, thus validating an entry.
I missed the primary bull candle entry, but price did retest the support of the broken structure, assuring the trade even more. I expect price to reach around the most recent high close to 1.98247. Now we wait...
GOLD /XAUUSD SHORT 🔰 Pair Name : XAU/USD
🔰 Time Frame : 1H/4H
🔰 Scale Type : SMALL Scale
🔰 Direction : SELL
📈 Gold Analysis for Today's Trading Session 📉
Hello Traders! 🌟
Yesterday's US JOLTS Job Openings data release had a notable impact on gold prices. 📊 The precious metal managed to cross the crucial Fibonacci Level of 50% despite facing some negative pressure. ⚖️
Today, our focus is on the potential price movements in the gold market. 🕵️♂️ It's quite likely that we might witness a corrective move downwards, aimed at tapping into the liquidity below. This move could potentially be a strategic attempt to refill approximately 50% of the market imbalance. ⚙️
However, keep a close watch on the upcoming ADP employment data release scheduled for later today. 📆 This data could play a pivotal role in influencing gold's trajectory. Depending on the ADP data's impact, we might observe gold extending its downward movement. 📉 It could either retest the Fibonacci Level of 38.2% for a strong support test, or in a more bearish scenario, head straight towards the prominent Fibonacci Level of 61.8%. 📉📊
As always, it's essential to trade cautiously and manage your risk effectively. 🛡️ Market movements can be unpredictable, and staying informed about fundamental data releases is crucial for making informed trading decisions. 📈📊
Best of luck on your trades! 🍀📊📈
(Note: This analysis is for informational purposes only and should not be considered financial advice.) 💼🔍📊
Liquidity: Boosting Bitcoin's Growth Potential 📊💥🚀 Let's delve into the world of liquidity and its impact on Bitcoin's price movement. We'll explore how a significant surge in liquidity from the bottom of the chart can potentially trigger a bullish momentum. Let's get started!
🕳️ Liquidity Pools: Imagine liquidity as the fuel that drives price action. Liquidity pools are areas where traders place their buy and sell orders. These zones are vital because they influence market dynamics.
💥 Liquidity Pool Breakouts: When Bitcoin's price approaches a liquidity pool at the bottom of the chart, it gathers momentum like a spring about to bounce. A breakout from this pool can initiate a chain reaction of buying, pushing the price upward.
📊 Market Impact: Liquidity pool breakouts attract traders and algorithms seeking opportunities. The influx of trading activity can lead to rapid price movements, creating potential profit opportunities.
💡 Spotting Opportunities: The excitement around liquidity pool breakouts stems from the potential for significant price surges. Observant traders who identify these setups might position themselves to capitalize on the momentum.
🚀 Navigating Growth: Recognizing liquidity zones and their potential breakouts can give you a strategic advantage. As liquidity moves across different zones, you can ride the wave of potential growth.
So, what's the key takeaway here? 📊 Understanding liquidity zones can provide insights into possible price movements. Keep an eye on breakout moments, as they can present opportunities to ride the upward trend.
Stay curious, stay attentive, and remember – just as liquidity flows impact Bitcoin's journey, staying informed can guide your investment decisions in the crypto world! 🚀💰
❗See related ideas below❗
Follow + Like this post and leave a nice comment, it will allow me to move faster and make more useful content! 💚💚💚
GBPUSD LONG FOLLOWED BY SHORTS *PREDICTION*As we can see on the charts the current trend is bullish - which in fact is the pullback in the higher TF (HIGHER TF - BEARISH).
We are about to enter a buy zone - only will be confirmed by the reaction off the OB, if we see a solid rejection (which will implicate the confirmation of buys) we shall follow it up to the next OB zone seen on the left hand side.
With this comes pullbacks as it reaches EQH (Equal Highs) - when an equal high occurs it will 9/10 follow with an pull back to an POI.
This will continue to the most probable OB at the top of the zone, it will most probably sweep the liquidity from the top zone also so beware of where you end up leaving your SL.
ENTRIES ONLY TO BE MADE ON LOWER TIME FRAME.
The following after the touch we will also wait again for confirmations of the short position. If achieved we will expect the lows liquidity to be swept, giving us a massive swing opportunity.
Same Old , Same Old !! hi, as we've seen multiple times before, the BSL (Buy-Side Liquidity) has been targeted tonight, but the SSL (Sell-Side Liquidity) remains untouched with a significant accumulation.
I identify 4 scenarios. I've been bullish since the price reached the 25-26K level. Therefore, I believe one of the initial three scenarios is possible, but which one is the most likely?
BTC experienced a 4% pump in 6 hours, which falls short. It requires more momentum from new buyers, so it's not scenario 1.
Between scenarios 2 and 3, if the price targets the lowest liquidity around 26300, it could result in consolidation followed by a reversal. However, if it pursues scenario 2, the upward trend may continue!
Thus, I conclude that scenario 2 is not only likely but also the best possible outcome.
I hope you found my analysis favorable. I'll provide an update later.
EURUSD SHORT/ SELL🔰 Pair Name : EUR/USD
🔰 Time Frame : 1H/4H
🔰 Scale Type : MID Scale
🔰 Direction : SHORT/SELL
📊📉 EURUSD Technical Analysis 📉📊
Greetings fellow traders! 🌐📈 Taking a purely technical perspective on EURUSD, we observed a significant plummet yesterday, attributed in part to the FOMC minutes. This abrupt decline left a residual liquidity trail, indicating a market imbalance that calls for re-equilibration. 🔄⚖️ Before entertaining the possibility of further downward movements, we anticipate a potential price correction towards, or even to, the lower bounds of the daily demand zone. 📉⚙️
📰 On the fundamental front, we've attached a relevant article discussing the FOMC meeting briefing. Over the next six weeks, brace yourselves for a potent USD rally, potentially spurred by apprehensions surrounding the Fed's contemplation of interest rate hikes. 🏦💼
Remember, trading prudently is paramount. Always prioritize risk management and informed decision-making. 🛡️💡 Trade wisely and stay vigilant. 🚀💰
#EURUSDAnalysis #TechnicalPerspective #FundamentalOutlook #StayInformed #TradeSafely 📊📉📰💼📈🛡️
GBPJPY SHORT /SELL🔰 Pair Name : EUR/JPY
🔰 Time Frame : 4H/ DAILY
🔰 Scale Type : MID Scale
🔰 Direction : SHORT/SELL
📈 GBPJPY has completed the 50% liquidity collection phase last night 🌙 and is now heading towards the daily demand zone around the area of 182.588 🎯. The next target is to complete the Fibonacci 127% extension retest at the Fib100% level 📊.
EURUSD - 30,000 ft ViewIn this video I walk you through EURUSD from the Yearly Chart, down to the Weekly Chart. Going over levels that have been swept, levels I see as upcoming draws on liquidity, and 3 scenarios I see possibly playing out for EURUSD over the next 1-3 quarters.
As always, good luck, have fun, and practice solid risk management.
CADCHF LONG/ BUY🔰 Pair Name : CAD/CHF
🔰 Time Frame : 4H/ DAILY
🔰 Scale Type : MID Scale
🔰 Direction : Long/ Buy
📈 Comprehensive Fundamental and Technical Analysis Update 📊📉
Over an extended time frame, the prevailing price action underscores a consistent consolidation pattern, confined within the well-defined range of 0.6480 to 0.6610. Our perspective remains firmly inclined toward a bullish trajectory, in alignment with the unwavering determination of the Federal Reserve to execute a series of deliberate interest rate hikes. This strategic approach seeks to effectively counteract impending inflationary pressures, with heightened emphasis on the latter half of 2023. Anticipating a notably robust performance from the Canadian Dollar (CAD), contrasted by the comparatively subdued Swiss Franc (CHF), it is imperative to maintain vigilant awareness of potential interventions that the Swiss National Bank (SNB) might introduce, potentially influencing the dynamic behavior of CHF.
🛢️ Noteworthy is the imminent conclusion of the oil price retest phase, positioning it for a forthcoming upward trajectory. This element introduces an additional layer of complexity to our analysis. However, it remains pivotal to acknowledge the lingering potential for SNB intervention, which retains its significance in shaping the CHF landscape.
🔍 Elaborating on our recent correspondence pertaining to the CAD/CHF pair, a discernible disparity has emerged, prominently depicted on the daily chart. This incongruity serves as a fundamental facet within the operational framework of a robust market, as historical precedent underscores the tendency for such divergences to eventually reconcile, consequently fostering the accumulation of liquidity within the market environment.
Prudent and judicious decision-making should be exercised in your trading pursuits! 📈📉👍
USDJPYAs a student of SMC, I've just shorted USDJPY earlier in the day on the 1H timeframe. There is a 1H OB where price showed a strong rejection (it may or may not respect it). Further more there is a divergence happening on the Daily Timeframe. Add on to more confirmation, there is a strong resistance where price shows there is a strong sellers happening at that 1H OB area.
If you do have any suggestions or Idea's or even traders from SMC, drop down a comment down below. let's discuss more about USDJPY market structure.
NOTE: I'm not a professional advisor nor a signal provider, trade at your own risk and MM.
USOIL/XTIUSD SHORT/SELL🔰 Pair Name : XTIUSD
🔰 Time Frame : 4hrs/ Daily
🔰 Scale Type : Long Scale
🔰 Direction : Short/ Sell
📈🛢️ Comprehensive USOIL Analysis Update: 📊📉
📉 Downtrend Break and Retest: USOIL has successfully breached its weekly downtrend line, signaling a notable shift in momentum. As we undergo the retest phase, remember that the market remains within a promising new uptrend, particularly from a fundamental perspective. 📈🛢️🔄
💡 Fundamental Considerations: Last week's release of Chinese inflation data casts a shadow on the pace of China's post-pandemic recovery. The Consumer Price Index (CPI) YoY saw a decline of 0.3% in July, indicating deflation within China. Given that China is a pivotal oil consumer globally, this scenario applies downward pressure on WTI prices. 📉🇨🇳
⛓ Supply Dynamics: Counterbalancing this, we observe supply constraints that could further elevate WTI prices. Saudi Arabia's decision to extend its voluntary oil output cut of one million barrels per day (bpd) through September, coupled with Russia's planned reduction of oil exports by 300,000 bpd for September, contributes to the supply-side equation. ⛽📉
🌐 OPEC and EIA Insights: Both the Organisation of Petroleum Exporting Countries (OPEC) and the Energy Information Administration (EIA) are optimistic about the global energy market in H2 2023. This sentiment is rooted in several drivers, including heightened summer air travel, increased oil demand for power generation, and rising petrochemical activity in China. The IEA anticipates a robust 2.2 million bpd demand growth in 2023, while OPEC forecasts a significant 2.44 million bpd production increase. 📊🌍
📊 Economic Growth and Revised Projections: A positive undercurrent also emerges in the global economic landscape, with OPEC revising its global economic growth forecast to 2.7% (from 2.6%). This adjustment is driven by impressive growth in the United States, Brazil, and Russia during the first half of 2023, exceeding initial estimates. OPEC's outlook for the following year stands at 2.6%. 📈💼📉
As you navigate these dynamic market dynamics, remember to implement robust risk management strategies and align your decisions with a well-structured trading plan. The interplay of factors makes for an intriguing landscape, and informed execution remains paramount.
US30 - Weekly reviewHello Traders!
Hope this week was a profitable one.
US30 had a rather bearish week - we can see that after last weeks low was broken. Market gave us clear direction for sellside to be taken out.
Yellow lines are showing us previous areas of where sellside liquidity could be.
I expect the bearish momentum to continue however we must also anticipate corrections before the real move happens.
Today is Friday naturally we notice reversals to the current trend for the week. Traps and sweeps will be on the agenda ;)
i will be watching price from 34765 to 34745 for entry zone
REMEMBER this is not confirmation but merely anticipation.
Follow your rules ;)
$ES New All Time High ExpectedOur projected path for CME_MINI:ES1! to take out the January 2022 High which also happens to be the All Time High. We are using a range from a Weekly Volume Imbalance and a Weekly Bullish Order Block combined to give us a price range between $4190-$4288 to find long positions. This price range is also in a discount for the current weekly price leg; giving us more reason to look for buying opportunities here. Look for price to reach this are late August or early September. We will post a smaller time frame once we get into this area and we see a favorable trade. We will take a small swing position but we are more excited to ride the price legs to the new high through intraday trading. We have used Fibonacci Projections to give us $4854 as our first target.
Just for fun we want to call $5092 as the 2023 High of The Year. Leave your best guesses for the 2023 High below :)
Happy Trading,
BlackOakCapital