NAS100USD: Is Bearish Control Taking Over?Greetings Traders!
While NAS100USD remains bullish, I see signs of a potential bearish shift for several reasons identified on the chart. Most notably, price has been rejecting a Rejection Block, a significant institutional resistance zone. This rejection has resulted in strong downside displacement, signaling that institutional interest may now lean bearish.
Retail vs. Institutional Resistance
Institutional Resistance:
Price has retraced into heavy premium levels, ideal for selling opportunities (sell in premium, buy in discount). A key difference with institutional resistance lies in its foundation on Rejection Blocks. These order blocks, formed at market turning points, are characterized by large wicks relative to candle closures. They indicate that institutions or smart money entered substantial sell orders, giving confidence to anticipate bearish price action.
Retail Resistance:
In contrast, retail resistance often serves as engineered liquidity. Here, banks and institutions create the illusion of a resistance zone to entice retail traders into taking trades. These zones, strategically placed at premium levels, enable institutions to sell against retail positions. Understanding this manipulation is critical for aligning with institutional order flow.
Trading Plan
Confirmation Zone:
Monitor price action at the Rejection Block and premium levels for bearish confirmation.
Targets:
Fair Value: The 50% retracement of the leg.
Liquidity Pool: The downside liquidity resting below current levels.
Discussion and Insights
If you have questions, analysis, or insights, feel free to share them in the comment section. Let’s collaborate, learn, and grow as traders!
Kind regards,
The_Architect