Fair Value Gap (FVG) - Highlighted in Orange:
This is an imbalance zone where price moved quickly without much trading.
It acts as a potential supply zone where institutions may have unfilled sell orders.
Your sell is anticipated after price returns to fill the FVG.
Market Structure Break (BMS):
Shown by the horizontal black arrow.
Price broke the previous low, confirming a bearish structure shift.
Indicates momentum shifting to the downside.
Entry & Stop Loss:
Entry: Just inside or after the FVG gets tapped.
Stop Loss: Above the FVG and the recent swing high (around 1.17680).
Risk-Reward: Favorable, around 1:3.34 (shown on chart).
Target (Take Profit):
Down near 1.17301.
This is likely based on a previous low, liquidity pool, or demand zone.
Price Action Confirmation:
Price impulsively dropped into the gray zone (likely previous demand or support).
You're expecting a pullback into the FVG before continuation downward.
✅ Why this Sell Setup Makes Sense (SMC Logic):
Break of Structure (BOS): Signals bearish intent.
FVG = Premium Zone (Sell Area): Fills imbalance and provides institutional entry.
Risk-Reward Ratio: Excellent, over 3:1.
Entry is Smart Money Based: You're not selling blindly but waiting for a retracement to a logical supply zone.
This is an imbalance zone where price moved quickly without much trading.
It acts as a potential supply zone where institutions may have unfilled sell orders.
Your sell is anticipated after price returns to fill the FVG.
Market Structure Break (BMS):
Shown by the horizontal black arrow.
Price broke the previous low, confirming a bearish structure shift.
Indicates momentum shifting to the downside.
Entry & Stop Loss:
Entry: Just inside or after the FVG gets tapped.
Stop Loss: Above the FVG and the recent swing high (around 1.17680).
Risk-Reward: Favorable, around 1:3.34 (shown on chart).
Target (Take Profit):
Down near 1.17301.
This is likely based on a previous low, liquidity pool, or demand zone.
Price Action Confirmation:
Price impulsively dropped into the gray zone (likely previous demand or support).
You're expecting a pullback into the FVG before continuation downward.
✅ Why this Sell Setup Makes Sense (SMC Logic):
Break of Structure (BOS): Signals bearish intent.
FVG = Premium Zone (Sell Area): Fills imbalance and provides institutional entry.
Risk-Reward Ratio: Excellent, over 3:1.
Entry is Smart Money Based: You're not selling blindly but waiting for a retracement to a logical supply zone.
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.