Key Structure Areas:
Previous Support Zone (highlighted in green) is now acting as resistance.
Break of Structure (BOS) indicates a shift in market direction from bullish to bearish.
Target Zone marked near a prior weak low / support (S) zone.
Setup Explanation:
Break of Structure (BOS):
Price breaks below the previously strong support zone.
Signals bearish momentum and a potential trend reversal.
Retest of Support as Resistance:
After the BOS, price pulls back into the old support zone.
This zone now acts as resistance, confirming the change in polarity.
Entry Point:
The ideal entry is marked at the retest level within the resistance zone.
Candlestick reaction (e.g., rejections or wicks) confirms seller strength.
Target Area:
The target is the weak low marked with an “S” — a previous swing low that may now be liquidated or swept.
This gives a favorable risk-to-reward ratio for a short trade.
Key Trading Concepts Used:
Market Structure: BOS identifies trend change.
Support/Resistance Flip: A classic and reliable trading concept.
Liquidity Sweep Target: Going for the weak low assumes it will be tested or broken.
Potential Trade Summary:
Direction: Short / Sell
Entry: ~$4,397 (at retest of resistance zone)
Target: ~$4,343 or lower
Stop-loss: Above the resistance zone (around $4,420)
Previous Support Zone (highlighted in green) is now acting as resistance.
Break of Structure (BOS) indicates a shift in market direction from bullish to bearish.
Target Zone marked near a prior weak low / support (S) zone.
Setup Explanation:
Break of Structure (BOS):
Price breaks below the previously strong support zone.
Signals bearish momentum and a potential trend reversal.
Retest of Support as Resistance:
After the BOS, price pulls back into the old support zone.
This zone now acts as resistance, confirming the change in polarity.
Entry Point:
The ideal entry is marked at the retest level within the resistance zone.
Candlestick reaction (e.g., rejections or wicks) confirms seller strength.
Target Area:
The target is the weak low marked with an “S” — a previous swing low that may now be liquidated or swept.
This gives a favorable risk-to-reward ratio for a short trade.
Key Trading Concepts Used:
Market Structure: BOS identifies trend change.
Support/Resistance Flip: A classic and reliable trading concept.
Liquidity Sweep Target: Going for the weak low assumes it will be tested or broken.
Potential Trade Summary:
Direction: Short / Sell
Entry: ~$4,397 (at retest of resistance zone)
Target: ~$4,343 or lower
Stop-loss: Above the resistance zone (around $4,420)
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.