EURUSD 7 Dimension Sell Trade Idea
Top-Down View (H4 Analysis):
The H4 timeframe shows that the price has recently formed a Change of Character (CHoCH) and appears to be making a retracement. Despite this pullback, it hasn’t mitigated the higher-timeframe Points of Interest (POI), particularly the unmitigated Daily Fair Value Gap (FVG). Observing H1, we see considerable volatility and uncertainty, possibly indicating attempts to shake out weak-handed traders before a deeper corrective move toward the H1 internal extreme POI for mitigation.
😇 7 Dimension Analysis
🟢Time Frame: H4
🟢Swing Structure:
Bullish with CHoCH: The swing structure is bullish on the H4, with a recent CHoCH indicating a potential shift. An inducement has been observed, and price has just entered the discounted zone, which aligns with the 61% Fibonacci retracement level.
POI and Liquidity Levels: The area of interest includes the 61% & 88% Fibonacci level, liquidity sweeps, and support at the demand zone. Waiting for price to reach this zone and observing its reaction will be critical.
Pattern:
🟢 Chart Patterns:
Double Bottom: Forming as a potential reversal pattern at the discounted zone.
🟢 Candle Patterns:
Long Wick & Momentum Candles: Recent candles show long wicks and momentum on the downside, indicating that bears are still in control of the current session, albeit with limited momentum strength for long-term sustainability.
Volume:
Moderate volume suggests that while sellers are currently dominant, the bearish momentum may not hold for an extended period, reinforcing the expectation of a retracement.
Momentum (RSI):
🟢 Range Shift: Momentum has shifted from bearish to sideways with multiple bullish divergences, suggesting a loss of bearish strength and a potential for reversal or retracement.
Volatility (Bollinger Bands):
🟢 Middle Band Breach: The price has dropped below the middle band, indicating a slight bearish bias.
Expansion Cool-Down: Following a period of expansion, price appears to be consolidating and "cooling down" before the next directional move.
🟢Strength (ROC and Consolidation):
Consolidation Phase: ROC reflects consolidation, supporting the idea that the bearish momentum may pause or weaken, aligning with the expectation of a retracement or sideways movement.
🟢Rating: ⭐⭐⭐
Probability: 65%
This setup has a moderate confidence level for a short-term sell entry, considering the confluence of factors on both the H4 and refined lower time frames.
🟢Trade Setup:
Entry Details:
Entry Time Frame: 15-Minute (15M)
Entry TF Structure: Bearish (for counter-trend entry in a corrective move)
Point of Interest (POI): Extreme Fair Value Gap (FVG)
Trade Execution:
💡 Decision: Sell Limit
🚀 Entry: 1.8747
✋ Stop Loss: 1.0888
🎯 Take Profit: 1.07927
😊 Risk to Reward Ratio: 6.94 RR
🕛 Expected Duration: 1 Day
SUMMARY:
This H4-based top-down analysis with entry refinement on the 15M timeframe provides a short-term sell opportunity within a bullish higher timeframe structure. Price action, volume, and momentum indicators suggest a potential bearish pullback toward the 15M POI, aligning with the 61% Fibonacci level and significant liquidity areas. The setup targets a short-term retracement with a high reward-to-risk ratio, with the expectation that price may retrace to mitigate lower timeframe liquidity levels before resuming the bullish trend.
The H4 timeframe shows that the price has recently formed a Change of Character (CHoCH) and appears to be making a retracement. Despite this pullback, it hasn’t mitigated the higher-timeframe Points of Interest (POI), particularly the unmitigated Daily Fair Value Gap (FVG). Observing H1, we see considerable volatility and uncertainty, possibly indicating attempts to shake out weak-handed traders before a deeper corrective move toward the H1 internal extreme POI for mitigation.
😇 7 Dimension Analysis
🟢Time Frame: H4
🟢Swing Structure:
Bullish with CHoCH: The swing structure is bullish on the H4, with a recent CHoCH indicating a potential shift. An inducement has been observed, and price has just entered the discounted zone, which aligns with the 61% Fibonacci retracement level.
POI and Liquidity Levels: The area of interest includes the 61% & 88% Fibonacci level, liquidity sweeps, and support at the demand zone. Waiting for price to reach this zone and observing its reaction will be critical.
Pattern:
🟢 Chart Patterns:
Double Bottom: Forming as a potential reversal pattern at the discounted zone.
🟢 Candle Patterns:
Long Wick & Momentum Candles: Recent candles show long wicks and momentum on the downside, indicating that bears are still in control of the current session, albeit with limited momentum strength for long-term sustainability.
Volume:
Moderate volume suggests that while sellers are currently dominant, the bearish momentum may not hold for an extended period, reinforcing the expectation of a retracement.
Momentum (RSI):
🟢 Range Shift: Momentum has shifted from bearish to sideways with multiple bullish divergences, suggesting a loss of bearish strength and a potential for reversal or retracement.
Volatility (Bollinger Bands):
🟢 Middle Band Breach: The price has dropped below the middle band, indicating a slight bearish bias.
Expansion Cool-Down: Following a period of expansion, price appears to be consolidating and "cooling down" before the next directional move.
🟢Strength (ROC and Consolidation):
Consolidation Phase: ROC reflects consolidation, supporting the idea that the bearish momentum may pause or weaken, aligning with the expectation of a retracement or sideways movement.
🟢Rating: ⭐⭐⭐
Probability: 65%
This setup has a moderate confidence level for a short-term sell entry, considering the confluence of factors on both the H4 and refined lower time frames.
🟢Trade Setup:
Entry Details:
Entry Time Frame: 15-Minute (15M)
Entry TF Structure: Bearish (for counter-trend entry in a corrective move)
Point of Interest (POI): Extreme Fair Value Gap (FVG)
Trade Execution:
💡 Decision: Sell Limit
🚀 Entry: 1.8747
✋ Stop Loss: 1.0888
🎯 Take Profit: 1.07927
😊 Risk to Reward Ratio: 6.94 RR
🕛 Expected Duration: 1 Day
SUMMARY:
This H4-based top-down analysis with entry refinement on the 15M timeframe provides a short-term sell opportunity within a bullish higher timeframe structure. Price action, volume, and momentum indicators suggest a potential bearish pullback toward the 15M POI, aligning with the 61% Fibonacci level and significant liquidity areas. The setup targets a short-term retracement with a high reward-to-risk ratio, with the expectation that price may retrace to mitigate lower timeframe liquidity levels before resuming the bullish trend.
Trade closed: stop reached
because of GAP up stop hit
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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.