Unlocking the Secrets of Price Inefficiency: Dive Deep into FVG👑Price inefficiencies are also known as imbalances, gaps or voids. Healthy price action moves in a zigzag fashion, making highs and lows in line with the directional bias at any given moment. When price isn’t trending we find it consolidates, in which case highs lows are still being made. However, we may also see price move in straight lines with huge volume and momentum. When this happens, price finds itself unable to deliver price in an efficient manner. For example, in a bullish environment, price may continue to make higher highs without providing higher lows at a discount price. When price moves with this much momentum, it leaves behind imbalances.
🟠An imbalance can be identified by open space in price action, where the wicks on either side of a candle do not match each other. On the left is an example of price inefficiency, since the wick high of candle 1 does not meet the wick low of candle 3, leading to an imbalance on candle 2.
🟠This is an example of healthy price action with no imbalances. This is because all candles have wicks on either side of them. Since wicks were bodies during live price action and are bodies on lower time frames, this shows that price was delivered efficiently to buyers and sellers in this area. Whereas the example above shows an imbalance on a bullish candle, which shows that price was only available to buyers in that imbalance and therefore is not efficient.
👉For price to be efficient, it needs to be delivered to buyers and sellers. This helps us understand that in our original bullish imbalance, price has to come back and fill that imbalance using bearish price action in order to make that price available to sellers. This re-balancing could take hours, days, weeks or years, but it is our job to understand that it must happen at some point. Inline with the rest of the strategy, we can use this knowledge to pick out the specific imbalances that will be filled and how we can capitalise on this.
🟠This is an example of the correctly identified imbalance and where we expect price to react from
🟠This is an example when is our level being met, it is at this point that we use the rest of the strategy and knowledge to capitalise on the move that is about to unfold with high risk:reward entries.
🟠This is the completion of this particular market cycle, with our level being respected and price giving us a nice bullish leg.
🔴Bearish Order Flow:
🟢Bullish Order Flow:
Smctrading
Possible bearish correction | USDCHF USDCHF on the daily time frame is still bearish ,after taking the liquidity around 0.87924 level mixed with bearish engulfing pattern and momentum candles, expecting a potential bearish move to the downside for a liquidity grab at 0.86624 ,0.87007 or 0.87175 price value
USD/JPYOANDA:USDJPY
- Very interesting here when we zoom out on the 4H
- If we anticipate price action to continue upwards, we have price at the 4H BreakerBlock, which is right above the 50% fib.
- Then drilling down to the 15m, we're looking for a structural break to the upside for an entry
- If price continues to head down, this will invalidate the 15m entry long
- I then need to look around the 4H 50-79% fib levels for another shot at going long, as this level does not break the recent HL on the 4H.
US30 TRADE IDEA UPDATEPrice reacted at the first POI to give us the bull run we expected.
I've taken 90% profit on my position because i still have a poi lower that price could also aim for next week.
We killed US30 this week. Let's do more next week.
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NASDAQ BULLISH TRADE IDEANASDAQ has presented a S&R setup. The market clearly broke out of a resistance and hence came back to retest the Resistance; now Support.
You can look for buy entries with your strategy on the lower timeframe.
Also, another confluence was the complete fill of the FVG on Weekly Timeframe.
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Buy Side and Sell Side During a Correction Period #8This analysis focuses on a common pattern observed in the cryptocurrency market, where after a trend, the market tends to undergo a corrective phase. In recent days, we have seen both Buy Side and Sell Side actions, with the market aiming to capture opportunities on both ends.
The critical question is: Which direction will the market ultimately choose? Analyzing within the context of a bearish market trend, we should be prepared for bullish manipulations coupled with significant bearish movements.
This presents a corrective period for Bitcoin, and it's crucial to remain vigilant. Now is the time to exercise utmost attention to identify the buying point amidst these market conditions.