🔹 1. Bearish Channel & Liquidity Trap Setup
Price action from late June into mid-July formed a clearly defined descending channel, with consistent lower highs and lower lows. This structure likely attracted retail traders into short positions, expecting continued downside.
💡 Key Insight: The initial breakout of the channel was a fake move — often referred to as a liquidity grab or inducement. This is typical in smart money models where institutions trap early traders before the real move begins.
🔹 2. Major CHoCH (Change of Character)
Shortly after the fakeout, price sharply reversed and broke a major internal structure level, giving us our first CHoCH confirmation. This is a critical event in SMC, signaling a possible trend reversal from bearish to bullish.
Why it matters: A CHoCH after a channel + fakeout combo is a strong reversal signal, especially when supported by volume and aggression.
Visual cue: Look at the bullish engulfing momentum candle post-fakeout — this was the moment smart money entered.
🔹 3. Trendline Break + SR Interchange (Support/Resistance Flip)
Following the CHoCH, price broke the trendline and came back down to test a high-probability SR Interchange Zone — an area where previous resistance turned into fresh support.
This zone also aligns with the order block and inefficiency area, making it a premium entry for institutions.
Notice how price respected the zone before launching aggressively upward.
🧠 Note: This was the cleanest entry point in this setup — combining structure break, liquidity, and a demand zone.
🔹 4. Major BOS (Break of Structure)
After the retest, EURUSD broke the last major lower high, confirming a Bullish BOS (Break of Structure). This is where many traders realized the trend had shifted.
Market sentiment flipped from bearish to bullish.
Momentum increased, indicating institutional buying pressure.
🔹 5. Next Target: Reversal Zone (Supply Area)
Price has now reached a critical supply zone (1.1930 – 1.1970) where the next major reaction is likely to occur. This area was previously a strong rejection point, and it aligns with a potential higher timeframe supply zone.
⚠️ Watch for:
Bearish rejection wicks
Liquidity sweeps above highs
Bearish engulfing or mitigation patterns
CHoCH on lower timeframes (1H, 15m)
✅ Key Trading Takeaways:
Liquidity Trap: Retail was trapped inside a clean channel.
Fakeout Move: Induced shorts were wiped out.
CHoCH & BOS: Clear reversal pattern with momentum.
Perfect Retest Entry: Price retested demand and launched.
Current Area = Supply/Distribution: Great place to look for shorts or take profits.
📌 Possible Trading Plans:
🔸 Plan A: Reversal Short (Countertrend)
Entry: Inside 1.1930–1.1970 zone
Confirmation: Bearish PA + LTF CHoCH
TP1: Previous BOS (~1.1830)
TP2: Demand zone retest (~1.1650)
SL: Above 1.1980–1.2000
🔸 Plan B: Continuation Long (Breakout Bias)
Entry: Break + Retest above 1.2000 psychological level
SL: Below breakout wick
TP1: 1.2100
TP2: 1.2200+
🔖 Concepts Applied:
Smart Money Concepts (CHoCH, BOS, liquidity sweep)
Price Action Structure
Trendline break and retest
Supply & Demand Zones
Support/Resistance Flip (SR Interchange)
Volume + Momentum Confirmation
🔄 Conclusion:
This chart demonstrates a classic Smart Money narrative:
“Trap the retail, shift the structure, drive price into premium, then reverse.”
We're now at a make-or-break supply zone. Watch price behavior carefully — this is where smart traders either secure profits or prepare for the next leg.
Price action from late June into mid-July formed a clearly defined descending channel, with consistent lower highs and lower lows. This structure likely attracted retail traders into short positions, expecting continued downside.
💡 Key Insight: The initial breakout of the channel was a fake move — often referred to as a liquidity grab or inducement. This is typical in smart money models where institutions trap early traders before the real move begins.
🔹 2. Major CHoCH (Change of Character)
Shortly after the fakeout, price sharply reversed and broke a major internal structure level, giving us our first CHoCH confirmation. This is a critical event in SMC, signaling a possible trend reversal from bearish to bullish.
Why it matters: A CHoCH after a channel + fakeout combo is a strong reversal signal, especially when supported by volume and aggression.
Visual cue: Look at the bullish engulfing momentum candle post-fakeout — this was the moment smart money entered.
🔹 3. Trendline Break + SR Interchange (Support/Resistance Flip)
Following the CHoCH, price broke the trendline and came back down to test a high-probability SR Interchange Zone — an area where previous resistance turned into fresh support.
This zone also aligns with the order block and inefficiency area, making it a premium entry for institutions.
Notice how price respected the zone before launching aggressively upward.
🧠 Note: This was the cleanest entry point in this setup — combining structure break, liquidity, and a demand zone.
🔹 4. Major BOS (Break of Structure)
After the retest, EURUSD broke the last major lower high, confirming a Bullish BOS (Break of Structure). This is where many traders realized the trend had shifted.
Market sentiment flipped from bearish to bullish.
Momentum increased, indicating institutional buying pressure.
🔹 5. Next Target: Reversal Zone (Supply Area)
Price has now reached a critical supply zone (1.1930 – 1.1970) where the next major reaction is likely to occur. This area was previously a strong rejection point, and it aligns with a potential higher timeframe supply zone.
⚠️ Watch for:
Bearish rejection wicks
Liquidity sweeps above highs
Bearish engulfing or mitigation patterns
CHoCH on lower timeframes (1H, 15m)
✅ Key Trading Takeaways:
Liquidity Trap: Retail was trapped inside a clean channel.
Fakeout Move: Induced shorts were wiped out.
CHoCH & BOS: Clear reversal pattern with momentum.
Perfect Retest Entry: Price retested demand and launched.
Current Area = Supply/Distribution: Great place to look for shorts or take profits.
📌 Possible Trading Plans:
🔸 Plan A: Reversal Short (Countertrend)
Entry: Inside 1.1930–1.1970 zone
Confirmation: Bearish PA + LTF CHoCH
TP1: Previous BOS (~1.1830)
TP2: Demand zone retest (~1.1650)
SL: Above 1.1980–1.2000
🔸 Plan B: Continuation Long (Breakout Bias)
Entry: Break + Retest above 1.2000 psychological level
SL: Below breakout wick
TP1: 1.2100
TP2: 1.2200+
🔖 Concepts Applied:
Smart Money Concepts (CHoCH, BOS, liquidity sweep)
Price Action Structure
Trendline break and retest
Supply & Demand Zones
Support/Resistance Flip (SR Interchange)
Volume + Momentum Confirmation
🔄 Conclusion:
This chart demonstrates a classic Smart Money narrative:
“Trap the retail, shift the structure, drive price into premium, then reverse.”
We're now at a make-or-break supply zone. Watch price behavior carefully — this is where smart traders either secure profits or prepare for the next leg.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
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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.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Related publications
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.