This resembles an ICT Unicorn model (not sure if this is what you call it tho): Price obtained liquidity above, accompanied by a robust volume push-down to 38.5k, forming a breaker block coinciding with a Daily FVG. It's noteworthy that the current Breaker block level constitutes 50% of the present range, validating the corrective wave. Anticipating a price retracement to the daily FVG above 38k or completion of the corrective wave in the range of 32k-36k, where liquidity and an unfilled daily FVG are apparent.
Please manage your risk because price can still go higher around that premium zone.
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I took a short in the smaller timeframe FVG with stops above my daily high.
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Took another short at $43,124. It's at the golden zone and filled up the imbalance. It is also a 1Hour Orderblock :)
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I personally closed at that dip a few hours ago because I'm trading on a funded account and we have a daily drawdown rule based on equity, but I'll look for another short opportunity in the coming days. You can hold or take partials, set stop loss at breakeven, it's up to your risk management :)
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We can still look for shorts at current level, but the moment it breaks and closes above the recent high, I'll need to wait for confirmation to switch to longs.
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Invalidated correction wave. We're gonna see some consolidation around 50k price and see if we'll go higher or come back below 48k
@DigitalSurfTrading, I'm not an expert with EWT but isn't the lettered (A), (B), (C) a corrective wave?
DigitalSurfTrading
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@infamous7, ABC is used for corrective waves for sure. A consists of 5 smaller waves within it, however, this (A) on the chart looks like it only has 3 waves within it. Its called a 5-3-5 ABC, because A has 5 waves within it, B has 3 waves within it and C also has 5 waves within it.
infamous7
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@DigitalSurfTrading, I see, thanks for that. Would we be able to see 5 smaller waves if we go down to lower timeframes?