7 Dimensions BUY SETUP FOR EURCHF
Core Analysis Method: Smart Money Concepts
This analysis focuses on identifying a potential trade setup using Smart Money Concepts on the H1 timeframe. Here's the detailed breakdown:
😇 7 Dimension Analysis
Time Frame: H1
Swing Structure:
The market is in a bullish structure with back-to-back Breaks of Structure (BOS). After the last impulsive move, the corrective phase with 4 minor pullbacks has reached its conclusion, characterized by a bearish internal structure. The last swing involved a liquidity sweep that mitigated the Extreme Order Block (OB) and Sell Order Block (SOB) in the Discounted zone. This scenario creates a high probability for the initiation of another impulsive bullish move.
The same area also acts as a support or demand zone, further strengthening the potential for a bullish reversal.
Pattern:
🟢 Chart Patterns:
Reversal: A Double Bottom with a fakeout at the Point of Interest (POI), signaling potential bullish strength.
🟢 Candle Patterns:
A long wick pin bar, known as one of the strongest reversal signals, has appeared right at the POI.
Multiple momentum candles observed before the pin bar indicate climactic player activities and profit-taking.
A Tweezer top and Narrow Range 6 candles breakout have also been observed, adding to the reversal signal.
Volume:
🟢 A significant volume spike has been noticed right at the pin bar, which is a strong sign of a potential reversal.
Momentum RSI:
🟢 The current price is in a bearish to sideways zone, but a powerful divergence suggests that the market is preparing for a shift in momentum towards bullishness.
Volatility Bollinger Bands:
🟢 After a massive volatile move, Bollinger Bands contraction has started. The upcoming breakout will be crucial in determining the next move. Based on price action, an upper band breakout is anticipated, as the price has formed a Headfake and W pattern with multiple Band Punchers.
Strength ADX:
ADX is currently neutral, indicating a potential shift in momentum is brewing.
Rating: ⭐⭐⭐⭐ (4 Stars)
Probability: 75%
This trade setup has a high probability, indicating strong confidence in a potential bullish move.
✔️ Entry Time Frame: H1
✅ Entry TF Structure: Bullish
☑️ POI: Mitigated Extreme POI
💡 Decision: Open Buy position immediately.
🚀 Entry: 0.9480
✋ Stop Loss: 0.9445
🎯 Take Profit: 0.9648
😊 Risk to Reward Ratio: 3 RR
🕛 Expected Duration: 2 days
SUMMARY:
This trade setup on the H1 timeframe suggests a strong bullish opportunity. The market structure, volume, and momentum all point towards a potential reversal after a corrective phase. The pin bar at the POI, coupled with significant volume and bullish divergence in RSI, reinforces the likelihood of a bullish move. With a 75% probability, this trade setup offers a good risk-to-reward ratio of 3:1. The trade should be monitored closely, especially around the key levels of entry and take profit.
This analysis focuses on identifying a potential trade setup using Smart Money Concepts on the H1 timeframe. Here's the detailed breakdown:
😇 7 Dimension Analysis
Time Frame: H1
Swing Structure:
The market is in a bullish structure with back-to-back Breaks of Structure (BOS). After the last impulsive move, the corrective phase with 4 minor pullbacks has reached its conclusion, characterized by a bearish internal structure. The last swing involved a liquidity sweep that mitigated the Extreme Order Block (OB) and Sell Order Block (SOB) in the Discounted zone. This scenario creates a high probability for the initiation of another impulsive bullish move.
The same area also acts as a support or demand zone, further strengthening the potential for a bullish reversal.
Pattern:
🟢 Chart Patterns:
Reversal: A Double Bottom with a fakeout at the Point of Interest (POI), signaling potential bullish strength.
🟢 Candle Patterns:
A long wick pin bar, known as one of the strongest reversal signals, has appeared right at the POI.
Multiple momentum candles observed before the pin bar indicate climactic player activities and profit-taking.
A Tweezer top and Narrow Range 6 candles breakout have also been observed, adding to the reversal signal.
Volume:
🟢 A significant volume spike has been noticed right at the pin bar, which is a strong sign of a potential reversal.
Momentum RSI:
🟢 The current price is in a bearish to sideways zone, but a powerful divergence suggests that the market is preparing for a shift in momentum towards bullishness.
Volatility Bollinger Bands:
🟢 After a massive volatile move, Bollinger Bands contraction has started. The upcoming breakout will be crucial in determining the next move. Based on price action, an upper band breakout is anticipated, as the price has formed a Headfake and W pattern with multiple Band Punchers.
Strength ADX:
ADX is currently neutral, indicating a potential shift in momentum is brewing.
Rating: ⭐⭐⭐⭐ (4 Stars)
Probability: 75%
This trade setup has a high probability, indicating strong confidence in a potential bullish move.
✔️ Entry Time Frame: H1
✅ Entry TF Structure: Bullish
☑️ POI: Mitigated Extreme POI
💡 Decision: Open Buy position immediately.
🚀 Entry: 0.9480
✋ Stop Loss: 0.9445
🎯 Take Profit: 0.9648
😊 Risk to Reward Ratio: 3 RR
🕛 Expected Duration: 2 days
SUMMARY:
This trade setup on the H1 timeframe suggests a strong bullish opportunity. The market structure, volume, and momentum all point towards a potential reversal after a corrective phase. The pin bar at the POI, coupled with significant volume and bullish divergence in RSI, reinforces the likelihood of a bullish move. With a 75% probability, this trade setup offers a good risk-to-reward ratio of 3:1. The trade should be monitored closely, especially around the key levels of entry and take profit.
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