Stellar shows a strong possibility for a downward movement soon, and we’re currently watching for the upper, smaller resistance zone to be reached.
What’s Next?
Following the major drop on October 25th (a 6% market price movement), we broke below the EMAs, and we’re now seeing a strong bullish push, resulting in a smaller fakeout move. It appears this was a liquidity hunt below the EMAs, and we’re now looking for a re-test of the resistance zone.
Scenarios:
1. Rejection and MSB: In the first scenario, we’re looking for a good rejection at the resistance zone, which could trigger a potential MSB (Market Structure Break) and lead to a full downward movement.
2. FVG Attraction: In the second scenario, we see an FVG zone above the resistance acting as a possible price magnet. If the price reaches this zone, it could be an ideal entry for a short position.
Entry Points:
1. Watch the resistance zone closely—it’s our first entry point. If we see weakness there, wait for a clear MSB (orange line) and enter a short position.
2. If there’s a breakout above the resistance, the FVG zone will become our second area of interest. If the price reaches this zone, we’ll look for signs of weakness, expecting a reversal back down for a re-test and potential break of the resistance, leading to lower price zones.
Swallow Team
What’s Next?
Following the major drop on October 25th (a 6% market price movement), we broke below the EMAs, and we’re now seeing a strong bullish push, resulting in a smaller fakeout move. It appears this was a liquidity hunt below the EMAs, and we’re now looking for a re-test of the resistance zone.
Scenarios:
1. Rejection and MSB: In the first scenario, we’re looking for a good rejection at the resistance zone, which could trigger a potential MSB (Market Structure Break) and lead to a full downward movement.
2. FVG Attraction: In the second scenario, we see an FVG zone above the resistance acting as a possible price magnet. If the price reaches this zone, it could be an ideal entry for a short position.
Entry Points:
1. Watch the resistance zone closely—it’s our first entry point. If we see weakness there, wait for a clear MSB (orange line) and enter a short position.
2. If there’s a breakout above the resistance, the FVG zone will become our second area of interest. If the price reaches this zone, we’ll look for signs of weakness, expecting a reversal back down for a re-test and potential break of the resistance, leading to lower price zones.
Swallow Team
Note
Easy catch!
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🚨 Authentic Traders
⚡️ Short-Term + Mid-Term Trades
Keep an eye on us and you will not regret it. 😉
Telegram: t.me/+fiEDSn7M9pJkODA0
⚡️ Short-Term + Mid-Term Trades
Keep an eye on us and you will not regret it. 😉
Telegram: t.me/+fiEDSn7M9pJkODA0
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.