Price has reached a zone that broke the structure - see BoS on the left. Now that price is here in the zone, im not comfortable entering a buy order yet. The full bearish candle into the zone, leaves me with an indication that price may go lower.
+ve:
1. Big bearish candle in to the BoS zone - price may drop lower
2. There is equal low liquidity on the left which sits just below the zone which is expected to be taken out
4. HTF direction is still bullish
-ve:
1. below the equal low liquidity is an efficient zone before some imbalance
2. that imbalance may draw price to it and stop me out
Second trade idea:
Assuming that the first trade does not hold, then my focus will be the extreme zone where i will place a buy limit.
TP: 8.86R
+ve:
1. Big bearish candle in to the BoS zone - price may drop lower
2. There is equal low liquidity on the left which sits just below the zone which is expected to be taken out
4. HTF direction is still bullish
-ve:
1. below the equal low liquidity is an efficient zone before some imbalance
2. that imbalance may draw price to it and stop me out
Second trade idea:
Assuming that the first trade does not hold, then my focus will be the extreme zone where i will place a buy limit.
TP: 8.86R
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.