The chart uploaded *Light Crude Oil Futures (CL1!) on the 4-hour timeframe, and it uses several advanced **technical analysis and Smart Money Concepts (SMC)* tools. Here's a breakdown:
✅ *Analysis Tools and Concepts Used:*
*1. Market Structure Tools:*
*BOS (Break of Structure):* Indicates a key shift in market structure, confirming a trend reversal.
*Support and Resistance Zones:* Marked in blue rectangles:
*Support Zone* around 55–58.
*Resistance Zone* near 71–74.
*2. Smart Money Concepts (SMC):*
*OB (Order Block):* Identified below the current price, acting as a potential demand zone.
*FVG (Fair Value Gap):* A price imbalance between candles, targeted for mitigation.
*Breakout Zone:* Highlighted to confirm entry after trendline break.
*3. Trendline:*
*A *descending trendline* from recent highs showing a prior bearish trend — now broken (bullish signal).
*4. Indicators:*
*RSI (Relative Strength Index)* at the bottom with buy/sell signals. Shows momentum and overbought/oversold levels.
*5. Arrow Projection (Forecast):*
* Green *arrow pointing upward* toward the resistance zone suggests a *bullish continuation bias*.
*6. Entry Confirmation:*
* Marked *“Break out”* and *circle around the trendline break*, signaling a potential buy entry zone.
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# 📈 Summary:
This chart uses *price action, **market structure shifts, and **liquidity concepts* to project a bullish breakout with targets near the previous high. It’s a classic *Smart Money bullish setup*, with confirmation from the RSI and structural break.
Would you like help drafting a trade plan based on this chart setup?
✅ *Analysis Tools and Concepts Used:*
*1. Market Structure Tools:*
*BOS (Break of Structure):* Indicates a key shift in market structure, confirming a trend reversal.
*Support and Resistance Zones:* Marked in blue rectangles:
*Support Zone* around 55–58.
*Resistance Zone* near 71–74.
*2. Smart Money Concepts (SMC):*
*OB (Order Block):* Identified below the current price, acting as a potential demand zone.
*FVG (Fair Value Gap):* A price imbalance between candles, targeted for mitigation.
*Breakout Zone:* Highlighted to confirm entry after trendline break.
*3. Trendline:*
*A *descending trendline* from recent highs showing a prior bearish trend — now broken (bullish signal).
*4. Indicators:*
*RSI (Relative Strength Index)* at the bottom with buy/sell signals. Shows momentum and overbought/oversold levels.
*5. Arrow Projection (Forecast):*
* Green *arrow pointing upward* toward the resistance zone suggests a *bullish continuation bias*.
*6. Entry Confirmation:*
* Marked *“Break out”* and *circle around the trendline break*, signaling a potential buy entry zone.
---
# 📈 Summary:
This chart uses *price action, **market structure shifts, and **liquidity concepts* to project a bullish breakout with targets near the previous high. It’s a classic *Smart Money bullish setup*, with confirmation from the RSI and structural break.
Would you like help drafting a trade plan based on this chart setup?
Trade active
Use proper money management.
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.