AVAX LongMarket Structure:
The price is currently in a downtrend, making lower highs and lower lows.
The chart shows a significant recent low near the $24.40 level, which is identified as "Sellside Liquidity."
Key Levels:
Imbalance (Monthly): This area, marked on the chart, suggests a zone where there was an imbalance in trading volume, likely indicating potential resistance or a target area.
Sellside Liquidity: This level at approximately $24.40 is where there may be a cluster of stop-loss orders for long positions, representing potential liquidity for the market to tap into.
Fib Retracement Levels: The chart indicates the 0.5 Fibonacci retracement level, suggesting it as a potential resistance or target area.
Potential Trade Setup:
Long Position Entry: A potential long position could be considered around the $24.40 level, targeting the upper blue shaded area (around $34.00 to $36.00) as a take profit zone.
Stop Loss: A stop loss could be placed slightly below the $24.40 level to manage risk, considering it as the last significant support area.
Take Profit: The target take profit zone is indicated by the blue shaded area, aligning with the previous resistance and Fibonacci retracement levels.
Summary:
The trade idea involves entering a long position near the identified "Sellside Liquidity" level around $24.40, with a stop loss placed below this level. The target for the trade is the blue shaded area between $34.00 and $36.00, which coincides with the Fibonacci retracement level and previous market structure highs. This setup is based on the expectation that the price will rebound from the current support level and move towards the identified target zone.
