Bullish Signal NAS100Trade Setup:
Market: NAS100 (US100 Cash CFD)
Timeframe: 4-hour chart
Entry Strategy: Looking for a retracement to a key price level (Killzone) before a bullish move toward resting liquidity.
Key Components of the Analysis:
1. Market Structure & Price Action
The market is in a downtrend, but there is a sign of a potential reversal.
Price is approaching a key Fibonacci retracement zone, around 19,565 - 19,668, where buying pressure is expected.
The 50% - 78.6% Fibonacci retracement levels indicate an area of interest for buyers.
2. Liquidity & Key Price Levels
A key price level is marked around 20,450, acting as a potential resistance zone.
Resting liquidity (liq) is positioned higher at 20,880, suggesting an upside target if the trade plays out.
The killzone (highlighted in red) is the ideal area for a possible buy entry.
3. Trade Execution Plan
Entry: Within the Fibonacci retracement zone (Killzone) around 19,565 - 19,668.
Stop Loss: Below the 100% Fibonacci retracement level (19,403) to avoid being stopped out by market noise.
Take Profit: Targeting the resting liquidity zone around 20,880, aligning with a previous supply zone.
Risk-to-Reward Ratio: Favorable, as the green risk/reward box indicates a positive R:R setup.
4. Additional Confluences
The 200 EMA (blue line) may act as dynamic support.
Volume profile shows a high liquidity area near the killzone, increasing the likelihood of a bounce.
Previous price action suggests strong reactions from similar levels.