US30 hey guys, still new to this and trying to finally profitable in 2025. Been trading/studying US30 all past year. Would appreciate some of you guys advice about my chart analyis, where im wrong or right, if theres things i could change and/or add. I would really appreciate it
One of the most critical aspects of trading is understanding liquidity engineering by smart money and market makers. Moves in the market require liquidity, and this often results in price targeting areas with concentrated stop-losses. Here’s how you can systematically approach stop-loss placement to avoid falling into common traps.
Stop-Loss Placement and Structural Importance • Avoid Emotional Placement: Place stop-losses in structurally significant areas, not based on arbitrary or emotional decisions. • Structural Key Points: • If the market is in a range caused by a bearish break of structure, your stop-loss should be beyond the high that caused the displacement. • If price surpasses this high, it indicates a structural shift, suggesting the market is no longer bearish.
Liquidity Sweeps and Retail Psychology • Market Dynamics: • Price frequently targets areas with clustered stop-losses, often just above or below a range. This phenomenon, called a liquidity sweep, is a deliberate move to gather liquidity before reversing. • Retail traders often place stop-losses just beyond the range, making it easy to predict their locations. • Common Misconception: • Contrary to popular belief, hedge funds and institutions cannot “see” your stop-losses. However, based on market psychology, it is not difficult to anticipate where the majority of retail stop-losses are placed.
Practical Strategies for Stop-Loss Placement 1. Understand Market Structure: • Identify levels that invalidate your trade thesis. For longs, this is typically the structural low, and for shorts, the structural high. 2. Use ATR (Average True Range): • Add the ATR value to the structural low or high to account for market noise and volatility. • This ensures your stop-loss is not hit prematurely while maintaining a systematic approach.
Risk-Reward and Trade Selection • Focus on Positive Risk-to-Reward Ratios: • Your risk-to-reward should always exceed 2:1 to accommodate larger stop-losses while maintaining profitability. • If the setup does not offer a favorable ratio, do not adjust the stop-loss to force the trade. Instead, look for a new opportunity. • Systematic Discipline: • Keep your process systematic. Only take trades that align with your strategy and offer the correct risk-reward dynamics. • Avoid the temptation to tweak stop-losses or take-profits to fit a setup that doesn’t meet your criteria.
Key Takeaways • Be Systematic: Trading success comes from consistency and a systematic approach, not from emotional decision-making. • Learn Market Structure: Understand what levels invalidate a trade idea and use these as the basis for stop-loss placement. • Use ATR for Precision: Account for volatility to avoid being stopped out unnecessarily. • Focus on Risk-Reward: Always ensure your trades align with a positive risk-to-reward framework; otherwise, skip the trade.
By incorporating these principles into your trading, you can avoid common retail mistakes and develop a more professional, profitable approach over time.
The entry price of 43,390 is positioned near a strong daily support level, aligning with key Fibonacci retracement levels. This suggests a favorable buying opportunity, supported by bullish momentum indicated by RSI and MACD, along with positive price action confirmation.
The entry price of 43,598 is close to a significant daily resistance level, which aligns with Fibonacci extension levels. Technical indicators indicate overbought conditions, suggesting a potential bearish reversal from this level, making it an ideal sell opportunity.
💡 Summary:
US30 is trading at critical levels, with support around 43,390 and resistance near 43,598. The Buy Setup targets are set at 43,450 and 43,500, while the Sell Setup targets are at 43,550 and 43,500. These setups are based on daily Fibonacci retracement levels and strong support/resistance zones, confirmed by technical indicators.