Price finally tapped into the HTF value area and immediately retraced and closed with a heavy body H4 candle within structure.
I am now looking for a continuation short. Based on the size of the structure the continuation has to be more weighted and therefore in minimum a structured H1 bear-flag.
There is still the potential for a trap and price moving higher. The D1 candle is is still bullish and did only wick through the VA by about 20%, therefore the overall setup is higher risk and a clear confirmation for the continuation short is required before entering a trade.
*********** Glossary: VA – Value Area Liq.P – Liquidity Point BO – Break-Out H1 – Hourly Time-frame M15 – 15min Time-frame LTF – Lower Time-frame HTF – Higher Time-frame
Magenta horizontal Ray – Area of Interest Magenta rectangle – Gap / Area of Significance ***********