Current Market Condition:
Market Structure (MS) & Order Flow (OF):
Daily: Bearish OF, price broke both inner daily structure and major daily swing structure, price is now pullback to the daily supply level. There is a chance that price could continue bearish OF from here and is not necessary to mitigate the 4H OB if it has sufficient bearish momentum.
4H: Bearish OF, price is clearly in the pullback stage of 4H bearish leg, price has pullback to the premium of the leg and tapped into a major supply, strong reaction found (V-shape recovery).
1H: Bullish OF with ascending nature. Although price remain bullish OF as price didn't break the 1H swing low but the way price put in the HH is showing a sign of losing bullish momentum. Price broke the previous high and retrace immediately, failed to close above the previous high, showing there is insufficient bullish momentum to follow through. In the most recent PA, we can see that price try to put in a new 1H HH but failed, we can consider that's a respect to supply and the MRL formed poorly, if supply take back control from here we expect this rounded bottom (weak low) to get run.
Momentum:
1H: Demand still having the control but price is clearly losing bullish momentum. No convincing BOS found recently. The way price breaking the high is flattened, difficult to put in a new HH.
Liquidity Condition:
1H rounded bottom is a huge LQ pool, price could use it for liquidation to continue higher.
Trade Idea: Short
Price give a 15m CHoCH right after it tap into the daily major supply and stacked tons of LQ at downside. In the most recent PA, we can find a 5m CHoCH (supply taking back control), we can see this as an evidence of respecting the 1H supply, therefore looking for Short until price run the weak low.
Market Structure (MS) & Order Flow (OF):
Daily: Bearish OF, price broke both inner daily structure and major daily swing structure, price is now pullback to the daily supply level. There is a chance that price could continue bearish OF from here and is not necessary to mitigate the 4H OB if it has sufficient bearish momentum.
4H: Bearish OF, price is clearly in the pullback stage of 4H bearish leg, price has pullback to the premium of the leg and tapped into a major supply, strong reaction found (V-shape recovery).
1H: Bullish OF with ascending nature. Although price remain bullish OF as price didn't break the 1H swing low but the way price put in the HH is showing a sign of losing bullish momentum. Price broke the previous high and retrace immediately, failed to close above the previous high, showing there is insufficient bullish momentum to follow through. In the most recent PA, we can see that price try to put in a new 1H HH but failed, we can consider that's a respect to supply and the MRL formed poorly, if supply take back control from here we expect this rounded bottom (weak low) to get run.
Momentum:
1H: Demand still having the control but price is clearly losing bullish momentum. No convincing BOS found recently. The way price breaking the high is flattened, difficult to put in a new HH.
Liquidity Condition:
1H rounded bottom is a huge LQ pool, price could use it for liquidation to continue higher.
Trade Idea: Short
Price give a 15m CHoCH right after it tap into the daily major supply and stacked tons of LQ at downside. In the most recent PA, we can find a 5m CHoCH (supply taking back control), we can see this as an evidence of respecting the 1H supply, therefore looking for Short until price run the weak low.
Comment:
5m view:
