1. Support Turned Resistance (STR)
• The price initially had a support zone that later got broken.
• After the breakdown, that same zone is now acting as resistance (highlighted grey zones).
• This confirms a bearish shift in structure.
2. BOS (Break of Structure)
• The BOS mark shows that a previous low was broken, indicating bearish market intent.
• This is often used by traders to confirm continuation in the downward direction.
3. Rejection Candle (Entry Point)
• After the BOS, the price retraced back into the resistance zone (previous support).
• A rejection candle formed inside that zone, signaling sellers are defending it.
• This is the entry trigger for a short trade.
4. Weak Low & Target
• The chart suggests that the recent low is weak and likely to be taken out.
• The target is placed below that weak low, expecting continuation to the downside.
Trade Idea Summary
• Bias: Bearish
• Entry: On rejection candle at support-turned-resistance.
• Confirmation: BOS already occurred, validating bearish structure.
• Target: Below weak low (marked).
• Stop Loss: Should be placed slightly above the resistance zone (not shown but recommended).
This setup is a classic support-turned-resistance with BOS confirmation—a strong bearish continuation pattern.
• The price initially had a support zone that later got broken.
• After the breakdown, that same zone is now acting as resistance (highlighted grey zones).
• This confirms a bearish shift in structure.
2. BOS (Break of Structure)
• The BOS mark shows that a previous low was broken, indicating bearish market intent.
• This is often used by traders to confirm continuation in the downward direction.
3. Rejection Candle (Entry Point)
• After the BOS, the price retraced back into the resistance zone (previous support).
• A rejection candle formed inside that zone, signaling sellers are defending it.
• This is the entry trigger for a short trade.
4. Weak Low & Target
• The chart suggests that the recent low is weak and likely to be taken out.
• The target is placed below that weak low, expecting continuation to the downside.
Trade Idea Summary
• Bias: Bearish
• Entry: On rejection candle at support-turned-resistance.
• Confirmation: BOS already occurred, validating bearish structure.
• Target: Below weak low (marked).
• Stop Loss: Should be placed slightly above the resistance zone (not shown but recommended).
This setup is a classic support-turned-resistance with BOS confirmation—a strong bearish continuation pattern.
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.
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.