🧠 Market Structure Insight (SMC Framework)
🔍 1. Break of Structure (BOS):
The most recent BOS around the $3.95 level marked a bull trap, indicating a transition from bullish momentum to a distribution phase. This suggests institutional players offloaded liquidity at premium prices before initiating a markdown.
🕳️ 2. FVG (Fair Value Gap):
A visible Fair Value Gap (Imbalance) remains unmitigated above the current price action. This zone acted as a supply area, where price sharply moved down, leaving inefficiency in its trail—now serving as a potential point of rejection if revisited.
📌 Liquidity Zones:
Upper Liquidity Cleared: Price has swept highs before reversal (a sign of engineered liquidity grab).
Double Liquidity Pools Below:
First pool: Around $3.55 - $3.60
Second pool: Deep liquidity around $3.30 - $3.35
These levels are highly attractive for Smart Money to target next, suggesting continuation to the downside.
📉 Current Price Behavior:
Market is consolidating in a tight range just below FVG, signaling potential re-accumulation of sell orders.
The chart pattern suggests a potential lower high forming, likely to precede a bearish leg towards liquidity zones.
Bollinger Bands show compression, hinting at volatility expansion soon.
🎯 Trade Outlook (Not Financial Advice):
🔻 Bearish Bias:
Unless price breaks above the FVG zone with strong bullish momentum, the probability favors a bearish continuation targeting:
1st Target: ~$3.55
2nd Target (Deeper liquidity grab): ~$3.30
A rejection from FVG followed by a BOS to the downside would serve as confirmation for this bias.
📚 Educational Takeaway:
This chart is a clean illustration of Smart Money Concepts in play:
BOS > FVG > Liquidity Sweep
Price respects institutional footprints: grab liquidity, fill imbalances, then drive toward untouched liquidity zones.
Recognize market intent through structure shifts and imbalance reaction.
🔍 1. Break of Structure (BOS):
The most recent BOS around the $3.95 level marked a bull trap, indicating a transition from bullish momentum to a distribution phase. This suggests institutional players offloaded liquidity at premium prices before initiating a markdown.
🕳️ 2. FVG (Fair Value Gap):
A visible Fair Value Gap (Imbalance) remains unmitigated above the current price action. This zone acted as a supply area, where price sharply moved down, leaving inefficiency in its trail—now serving as a potential point of rejection if revisited.
📌 Liquidity Zones:
Upper Liquidity Cleared: Price has swept highs before reversal (a sign of engineered liquidity grab).
Double Liquidity Pools Below:
First pool: Around $3.55 - $3.60
Second pool: Deep liquidity around $3.30 - $3.35
These levels are highly attractive for Smart Money to target next, suggesting continuation to the downside.
📉 Current Price Behavior:
Market is consolidating in a tight range just below FVG, signaling potential re-accumulation of sell orders.
The chart pattern suggests a potential lower high forming, likely to precede a bearish leg towards liquidity zones.
Bollinger Bands show compression, hinting at volatility expansion soon.
🎯 Trade Outlook (Not Financial Advice):
🔻 Bearish Bias:
Unless price breaks above the FVG zone with strong bullish momentum, the probability favors a bearish continuation targeting:
1st Target: ~$3.55
2nd Target (Deeper liquidity grab): ~$3.30
A rejection from FVG followed by a BOS to the downside would serve as confirmation for this bias.
📚 Educational Takeaway:
This chart is a clean illustration of Smart Money Concepts in play:
BOS > FVG > Liquidity Sweep
Price respects institutional footprints: grab liquidity, fill imbalances, then drive toward untouched liquidity zones.
Recognize market intent through structure shifts and imbalance reaction.
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Market Analyst | XAU/USD Focused
Educational Content & Technical Breakdowns
Premium VIP Signals & Market Insights
Forex Mentorship & Affiliate Opportunities
Join our Telegram t.me/Mentor_Michael033
Educational Content & Technical Breakdowns
Premium VIP Signals & Market Insights
Forex Mentorship & Affiliate Opportunities
Join our Telegram t.me/Mentor_Michael033
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.