Market Structure Breakdown
Initial Break of Structure (BOS) – Bearish Phase
A significant bearish BOS occurred after a liquidity sweep above the prior high. This marked the temporary dominance of sellers, driving price downward.
Change of Character (ChoCh) – Sentiment Shift
Following the bearish leg, price printed a sharp recovery and broke above internal lower highs, signaling a Change of Character. This is the first indication of buyers regaining control.
Bullish BOS – Confirmation of Uptrend
The bullish BOS validated the upward structural transition, establishing new higher highs and higher lows. This confirms that institutional order flow has shifted bullishly.
🔹 Liquidity Dynamics
The liquidity sweep at the recent low (marked with a red dot) is a critical manipulation event, removing weak longs before institutions accumulate.
The current price action is printing a re-accumulation range, where price is likely to dip into key zones to trap breakout sellers.
Multiple liquidity pockets (green shaded regions) below serve as potential inducement zones. These areas may be revisited to gather liquidity before the next leg higher.
Final target is projected near the higher time frame sell zone around the $186–188 level, where substantial resting liquidity likely exists from previous swing highs.
🔹 Risk Management Considerations
Entry Zones: Look for confirmation-based entries within the liquidity trap zones, avoiding premature positioning at highs.
Stop-Loss: Place invalidation levels below engineered sweep zones to prevent getting caught in liquidity grabs.
Scaling Strategy: A tiered entry model can be effective here — initiating partial entries at the first trap and scaling in on deeper retracements.
Targeting: Conservative traders can aim for the internal high; aggressive positioning could seek full mitigation of the higher time frame zone.
Initial Break of Structure (BOS) – Bearish Phase
A significant bearish BOS occurred after a liquidity sweep above the prior high. This marked the temporary dominance of sellers, driving price downward.
Change of Character (ChoCh) – Sentiment Shift
Following the bearish leg, price printed a sharp recovery and broke above internal lower highs, signaling a Change of Character. This is the first indication of buyers regaining control.
Bullish BOS – Confirmation of Uptrend
The bullish BOS validated the upward structural transition, establishing new higher highs and higher lows. This confirms that institutional order flow has shifted bullishly.
🔹 Liquidity Dynamics
The liquidity sweep at the recent low (marked with a red dot) is a critical manipulation event, removing weak longs before institutions accumulate.
The current price action is printing a re-accumulation range, where price is likely to dip into key zones to trap breakout sellers.
Multiple liquidity pockets (green shaded regions) below serve as potential inducement zones. These areas may be revisited to gather liquidity before the next leg higher.
Final target is projected near the higher time frame sell zone around the $186–188 level, where substantial resting liquidity likely exists from previous swing highs.
🔹 Risk Management Considerations
Entry Zones: Look for confirmation-based entries within the liquidity trap zones, avoiding premature positioning at highs.
Stop-Loss: Place invalidation levels below engineered sweep zones to prevent getting caught in liquidity grabs.
Scaling Strategy: A tiered entry model can be effective here — initiating partial entries at the first trap and scaling in on deeper retracements.
Targeting: Conservative traders can aim for the internal high; aggressive positioning could seek full mitigation of the higher time frame zone.
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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.
Looking for powerful AI trading signals? Visit ProSignal.ai and take your trading to the next level! or join our telegram channel at t.me/prosignalai
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.