ETHUSD – Bearish Sell Setup (AUTH Liquidity Model)
ETHUSD is currently in a retracement phase after rejecting from a recent high. Price action is approaching a zone rich in overhead liquidity, offering a clean short opportunity based on AUTH (Areas of Liquidity) principles.
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Key Elements of the Setup:
FTA – First Trouble Area:
A minor demand zone just below current price where a short-term reaction could occur. This is not the main target, but a potential bounce point.
Inversion Point:
A previously supportive level that now acts as resistance. Often, this is where trapped buyers from earlier rallies exit, fueling momentum for further downside.
VAL – Value Area Low:
A historically high-volume area where price previously consolidated. It often acts as a target for rebalancing moves.
AUTH Liquidity Zones:
• Above price: Stacked buy stops above recent highs and wick clusters
• Below price: Sell-side liquidity in the form of equal lows, trendline bounces, and inefficient zones
The setup anticipates a sweep of upper liquidity before a drop into deeper value.
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Execution Idea:
The setup favors a short entry after liquidity above is cleared and bearish confirmation prints on a lower timeframe. The goal is to enter after price rejects from high liquidity and begins targeting value and imbalance zones below.
⸻
Disclaimer: This is a technical idea shared for educational purposes only. It does not constitute financial advice. Always perform your own analysis and manage risk responsibly.
ETHUSD is currently in a retracement phase after rejecting from a recent high. Price action is approaching a zone rich in overhead liquidity, offering a clean short opportunity based on AUTH (Areas of Liquidity) principles.
⸻
Key Elements of the Setup:
FTA – First Trouble Area:
A minor demand zone just below current price where a short-term reaction could occur. This is not the main target, but a potential bounce point.
Inversion Point:
A previously supportive level that now acts as resistance. Often, this is where trapped buyers from earlier rallies exit, fueling momentum for further downside.
VAL – Value Area Low:
A historically high-volume area where price previously consolidated. It often acts as a target for rebalancing moves.
AUTH Liquidity Zones:
• Above price: Stacked buy stops above recent highs and wick clusters
• Below price: Sell-side liquidity in the form of equal lows, trendline bounces, and inefficient zones
The setup anticipates a sweep of upper liquidity before a drop into deeper value.
⸻
Execution Idea:
The setup favors a short entry after liquidity above is cleared and bearish confirmation prints on a lower timeframe. The goal is to enter after price rejects from high liquidity and begins targeting value and imbalance zones below.
⸻
Disclaimer: This is a technical idea shared for educational purposes only. It does not constitute financial advice. Always perform your own analysis and manage risk responsibly.
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.