Price has pushed into a strong supply zone around 8,240–8,280, which has acted as a previous area of rejection. The market is currently showing exhaustion signs in that region, with consecutive wicks rejecting higher prices — suggesting potential bearish momentum buildup.
Market Structure:
The overall structure on the 4H timeframe remains bullish, but price is currently overextended after multiple impulsive legs. The most recent push into this supply zone shows signs of distribution, making it a high-probability area for a potential short-term correction before continuation.
Trade Plan:
Entry Zone: 8,240–8,280 (Supply Zone)
Direction: Short / Sell
Target Zones:
🥇 Take Profit One: 7,950 – minor support zone and previous consolidation area.
🥈 Take Profit Two: 7,850 – aligns with structural support from previous price accumulation.
🥉 Take Profit Three: 7,580 – major demand zone and potential swing low region.
Invalidation (Stop Loss): Above 8,300 – a clean break and close above this level would invalidate the short bias, indicating bullish continuation.
Confluence Factors:
✅ Strong supply zone rejection
✅ Multiple top wicks showing seller pressure
✅ Bearish divergence likely forming (if confirmed on RSI or MACD)
✅ Overextended bullish leg due for a retracement
Trade Bias:
🔻 Bearish (Short-term correction expected)
Risk Management:
Always use proper position sizing and risk management. A tight stop above the supply zone (around 8,300) keeps this setup favorable in terms of risk-to-reward.
💭 My Thoughts on Your Setup:
This idea is well-structured and makes sense technically. You’re trading directly from a premium zone (the upper range of a swing), with clear targets based on structure — that’s a solid approach for 4H swing trading.
Here’s what strengthens your setup:
The supply zone is clean and tested only once — still fresh.
You’ve placed realistic TP levels, gradually scaling out of the move.
The R:R ratio looks favorable if your stop is just above 8,300.
Potential improvement:
Watch how price reacts around 8,200–8,240 — if momentum shifts heavily bullish with strong 4H closes above 8,280, it’s safer to wait for confirmation before entering short. Otherwise, this is a textbook short setup off supply.
Market Structure:
The overall structure on the 4H timeframe remains bullish, but price is currently overextended after multiple impulsive legs. The most recent push into this supply zone shows signs of distribution, making it a high-probability area for a potential short-term correction before continuation.
Trade Plan:
Entry Zone: 8,240–8,280 (Supply Zone)
Direction: Short / Sell
Target Zones:
🥇 Take Profit One: 7,950 – minor support zone and previous consolidation area.
🥈 Take Profit Two: 7,850 – aligns with structural support from previous price accumulation.
🥉 Take Profit Three: 7,580 – major demand zone and potential swing low region.
Invalidation (Stop Loss): Above 8,300 – a clean break and close above this level would invalidate the short bias, indicating bullish continuation.
Confluence Factors:
✅ Strong supply zone rejection
✅ Multiple top wicks showing seller pressure
✅ Bearish divergence likely forming (if confirmed on RSI or MACD)
✅ Overextended bullish leg due for a retracement
Trade Bias:
🔻 Bearish (Short-term correction expected)
Risk Management:
Always use proper position sizing and risk management. A tight stop above the supply zone (around 8,300) keeps this setup favorable in terms of risk-to-reward.
💭 My Thoughts on Your Setup:
This idea is well-structured and makes sense technically. You’re trading directly from a premium zone (the upper range of a swing), with clear targets based on structure — that’s a solid approach for 4H swing trading.
Here’s what strengthens your setup:
The supply zone is clean and tested only once — still fresh.
You’ve placed realistic TP levels, gradually scaling out of the move.
The R:R ratio looks favorable if your stop is just above 8,300.
Potential improvement:
Watch how price reacts around 8,200–8,240 — if momentum shifts heavily bullish with strong 4H closes above 8,280, it’s safer to wait for confirmation before entering short. Otherwise, this is a textbook short setup off supply.
Trade closed: stop reached
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.