This chart of *GBP/USD* on the 4-hour timeframe shows a more advanced price action and smart money concept analysis. Here's a breakdown of the *tools and patterns* used:
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### *Tools Used:*
1. *Symmetrical Trend Lines:*
- Two trend lines (upper and lower) form a *symmetrical triangle* pattern.
- These trend lines help identify compression or consolidation leading to potential breakout or breakdown points.
2. *Support and Demand Zones (Blue Boxes):*
- Key *demand zones* are highlighted where price is expected to find support.
- These areas act as potential reversal zones.
3. *Break of Structure (BOS) and Change of Character (CHoCH):*
- Labels indicating important market structure shifts.
- BOS marks confirmation of a trend shift.
- CHoCH suggests a possible early reversal signal.
4. *Mirror Level:*
- An orange marker labeled "Mirror" shows a level where previous resistance is expected to act as support (or vice versa).
- Often used for confluence in trading decisions.
5. *Measured Move Projection:*
- Vertical blue lines and percentage values show *projected price moves* based on prior swings (e.g., "-3.68%" or -488.7 pips).
- Suggests symmetry in price movement.
6. *Swing Points and Key Highs/Lows:*
- Marked with large blue circles to indicate significant pivot areas.
- Often used for Fibonacci analysis or symmetry projection.
---
### *Patterns and Concepts Used:*
1. *Symmetrical Triangle:*
- The use of symmetrical trend lines indicates a *symmetrical triangle*, often a continuation or reversal pattern depending on breakout direction.
2. *Liquidity Grabs:*
- Price appears to have swept above previous highs before sharply reversing, implying a *liquidity grab* before moving lower.
3. *Market Structure Concepts (Smart Money):*
- CHoCH and BOS show institutional-style price action, where manipulation or accumulation/distribution plays a role.
4. *Double Top Formation:*
- The pattern near the recent high resembles a *double top*, signaling potential bearish reversal from resistance.
5. *Fibonacci or Symmetry-Based Moves:*
- The measured vertical drop suggests *symmetrical retracement* expectations.
---
Would you like help deciding how to trade based on this setup, or would you prefer a clean template to try this strategy yourself?
---
### *Tools Used:*
1. *Symmetrical Trend Lines:*
- Two trend lines (upper and lower) form a *symmetrical triangle* pattern.
- These trend lines help identify compression or consolidation leading to potential breakout or breakdown points.
2. *Support and Demand Zones (Blue Boxes):*
- Key *demand zones* are highlighted where price is expected to find support.
- These areas act as potential reversal zones.
3. *Break of Structure (BOS) and Change of Character (CHoCH):*
- Labels indicating important market structure shifts.
- BOS marks confirmation of a trend shift.
- CHoCH suggests a possible early reversal signal.
4. *Mirror Level:*
- An orange marker labeled "Mirror" shows a level where previous resistance is expected to act as support (or vice versa).
- Often used for confluence in trading decisions.
5. *Measured Move Projection:*
- Vertical blue lines and percentage values show *projected price moves* based on prior swings (e.g., "-3.68%" or -488.7 pips).
- Suggests symmetry in price movement.
6. *Swing Points and Key Highs/Lows:*
- Marked with large blue circles to indicate significant pivot areas.
- Often used for Fibonacci analysis or symmetry projection.
---
### *Patterns and Concepts Used:*
1. *Symmetrical Triangle:*
- The use of symmetrical trend lines indicates a *symmetrical triangle*, often a continuation or reversal pattern depending on breakout direction.
2. *Liquidity Grabs:*
- Price appears to have swept above previous highs before sharply reversing, implying a *liquidity grab* before moving lower.
3. *Market Structure Concepts (Smart Money):*
- CHoCH and BOS show institutional-style price action, where manipulation or accumulation/distribution plays a role.
4. *Double Top Formation:*
- The pattern near the recent high resembles a *double top*, signaling potential bearish reversal from resistance.
5. *Fibonacci or Symmetry-Based Moves:*
- The measured vertical drop suggests *symmetrical retracement* expectations.
---
Would you like help deciding how to trade based on this setup, or would you prefer a clean template to try this strategy yourself?
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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.
Join Telegram Channel Free t.me/+lvC6DGTZAqk3NTI8 "Explore daily insights: 4/5 signals meticulously analyzed, ensuring an impressive 99% accuracy in forex & crypto trades t.me/+XHUwVU1EKek0Nzlk
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.