Quick video showing two possible long setups based on price tapping 15m demand and producing a change of character with momentum.
On the H4 chart, after a massive raid of the highs, price has been falling down, creating supply chain and violating demand levels. My ecxpectations is for price to continue this bearish structure until it breaks the lows of the range.
Observations: - 4h still bearish. - Strong reaction at demand. - Entered discounted area of range.
4hr is still in a bearish trend, however it wicked above the high of the range, so might see some type of reaction on the closest demand zone.
After tapping into a 4h extreme supply (bearish trend), on the 15m we start to see a change of character (ChoCh) and tapping into the last demand. In case this demand fails, my bias would turn bearish. If the demand holds, we can still be buyers until price mitigates deeper into the 4hr supply.
On the 4h, things are going as originally expected, price is taking the trendline liquidity while having small reactions from some of the lower probability supply areas on the way. Still the expectation in my opinion is for price to keep pushing through until it hits one of the two supply areas above before seeing a massive drop to continue the bearish trend.
Price has reached a 4h supply area, however, not the strongest one, so even if it gives a reaction, in my opinion it will eventually break higher. In any case, we can take advantage, adapt and trade this reaction for as long as it holds. Remember that the first mitigation of an area is not always the true one, specially if it does not tap the EQ level of the zone.
On the 4h chart, price is moving as expected, producing a pullback into premium territory of the bearish leg.
On the 4h we see a bearish structure, price has produced a change of character and is building liquidity as inducement for a likely move down to demand to mitigate and rally to the supply marked above.
Price broke through major structure on the 4hr timeframe and expectations are for a pullback to begin sooner than later. We have a massive imbalance to fill, inducement above and two key POIs to monitor.
See chart for explanation. Add confluences such as liquidity pools below OB or an OB that clearly took liquidity.
See image
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