AUDCHF Short Setup – Peak Formation Reset IdentifiedIf we examine the peak formation high, we can clearly observe that three distinct levels of drop have already formed. These levels are especially visible on the H4 and H1 timeframes, confirming that a cycle has completed.
As we know, the market is primarily driven by liquidity and before any major reversal, the market tends to hunt stop-losses above or below significant highs or lows. For this reason, it's crucial to wait patiently for price to interact with the liquidity zone (typically just beyond the last swing high of the third level).
Only after this liquidity sweep should we look for a confirmed sell entry.
Execution Steps:
Wait for Price to Hit the Liquidity Zone
Let the market tap into the stop-loss cluster (marked zone). This is often a signal that smart money is ready to reverse direction.
Confirm the Sell Trigger
Look for a clean candle pattern, bearish engulfing candle, or another reliable entry trigger.
Exit at Full Cycle Completion
Hold the trade until the full cycle plays out to the downside.
All Btmm Pro Signals that will come after this are valid entries and good to go
