You Know: This Is Comprehensive Sell Trade setup
Core Analysis Method: Smart Money Concepts - 7 Dimension Analysis
This analysis provides a short-term sell setup within a larger bullish swing structure, using liquidity levels, chart patterns, and volume to determine an ideal entry point for a pullback.
😇 7 Dimension Analysis
Time Frame: H1
Swing Structure:
Bullish Structure with Break of Structure (BOS): The current structure remains bullish, with a BOS already confirmed. However, there are signs of a potential pullback.
Inducement Complete: Liquidity has been gathered in previous moves, indicating a probable short-term correction.
Current Price Zone: The price is positioned in a discounted zone, making it an attractive area for initiating a short position during this pullback.
Point of Interest (POI): Key Order Block (OB) and Fair Value Gap (FVG) areas are located around the 2724 price level, with liquidity resting here.
Pattern:
🟢 Chart Patterns:
A Rounding Top and Triple Top formation is present at the swing’s high, which could signal a reversal or the start of a Deep corrective move.
🟢 Candle Patterns:
A Double Bottom is forming, with the last candle closing as an inside bar and showing bullish support. This pattern suggests a potential short-term rally toward the FVG area before resuming a bearish correction.
Volume:
Sell-side volume is showing strength, indicating the presence of sellers and supporting a potential downside move within this pullback.
Momentum (RSI):
🟢 Momentum shows the price in a super bearish zone with signs of weakening bullish strength.
A bearish divergence is visible at the top, suggesting a decline in bullish momentum and adding weight to a probable short-term reversal.
Volatility (Bollinger Bands):
🟢 After a contraction, a squeeze breakout has been observed, with the price walking along the band. This formation often points to strong momentum, and in this case, it supports the downside breakout and potential continuation of the bearish pullback.
Strength (ROC & DMI):
Rate of Change (ROC) indicates an increasing bearish trend.
Bear DMI Line is above the 20 level, with an upward ADX curve, indicating that bearish strength is building.
Rating: ⭐⭐⭐
Probability: 60%
The overall analysis suggests a moderate confidence level, with strong indicators for a short-term bearish correction within a larger bullish swing structure.
Trade Setup:
Entry Details:
Entry Time Frame: M5
Entry TF Structure: Bearish
Point of Interest (POI): FVG
Trade Execution:
💡 Decision: Sell Limit
🚀 Entry: 2753
✋ Stop Loss: 2763
🎯 Take Profit: 2725
😊 Risk to Reward Ratio: 3.5 RR
🕛 Expected Duration: 1 Day
SUMMARY:
This setup aims to capture a bearish correction within a bullish structure on the H1 timeframe. Key reversal patterns, such as the Triple Top and bearish divergence on RSI, alongside increased sell-side volume, suggest potential for a short-term downward move. A Sell Limit order is planned around 2753, targeting a quick pullback to 2725, with a favorable risk-to-reward ratio of 3.5 RR.
This analysis provides a short-term sell setup within a larger bullish swing structure, using liquidity levels, chart patterns, and volume to determine an ideal entry point for a pullback.
😇 7 Dimension Analysis
Time Frame: H1
Swing Structure:
Bullish Structure with Break of Structure (BOS): The current structure remains bullish, with a BOS already confirmed. However, there are signs of a potential pullback.
Inducement Complete: Liquidity has been gathered in previous moves, indicating a probable short-term correction.
Current Price Zone: The price is positioned in a discounted zone, making it an attractive area for initiating a short position during this pullback.
Point of Interest (POI): Key Order Block (OB) and Fair Value Gap (FVG) areas are located around the 2724 price level, with liquidity resting here.
Pattern:
🟢 Chart Patterns:
A Rounding Top and Triple Top formation is present at the swing’s high, which could signal a reversal or the start of a Deep corrective move.
🟢 Candle Patterns:
A Double Bottom is forming, with the last candle closing as an inside bar and showing bullish support. This pattern suggests a potential short-term rally toward the FVG area before resuming a bearish correction.
Volume:
Sell-side volume is showing strength, indicating the presence of sellers and supporting a potential downside move within this pullback.
Momentum (RSI):
🟢 Momentum shows the price in a super bearish zone with signs of weakening bullish strength.
A bearish divergence is visible at the top, suggesting a decline in bullish momentum and adding weight to a probable short-term reversal.
Volatility (Bollinger Bands):
🟢 After a contraction, a squeeze breakout has been observed, with the price walking along the band. This formation often points to strong momentum, and in this case, it supports the downside breakout and potential continuation of the bearish pullback.
Strength (ROC & DMI):
Rate of Change (ROC) indicates an increasing bearish trend.
Bear DMI Line is above the 20 level, with an upward ADX curve, indicating that bearish strength is building.
Rating: ⭐⭐⭐
Probability: 60%
The overall analysis suggests a moderate confidence level, with strong indicators for a short-term bearish correction within a larger bullish swing structure.
Trade Setup:
Entry Details:
Entry Time Frame: M5
Entry TF Structure: Bearish
Point of Interest (POI): FVG
Trade Execution:
💡 Decision: Sell Limit
🚀 Entry: 2753
✋ Stop Loss: 2763
🎯 Take Profit: 2725
😊 Risk to Reward Ratio: 3.5 RR
🕛 Expected Duration: 1 Day
SUMMARY:
This setup aims to capture a bearish correction within a bullish structure on the H1 timeframe. Key reversal patterns, such as the Triple Top and bearish divergence on RSI, alongside increased sell-side volume, suggest potential for a short-term downward move. A Sell Limit order is planned around 2753, targeting a quick pullback to 2725, with a favorable risk-to-reward ratio of 3.5 RR.
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.