Wyckoff Schematic #1: Distribution for #BTC USDBlackRock is making a big move into Bitcoin with an ETF aimed at wealthy baby boomers. They are a huge financial company with $9 trillion in assets under management. BlackRock bought 11,500 Bitcoins, diving into the market, expecting a big comeback.
Despite the leviathan's moves, market's reaction to ETF approvals is erratic. The market is reacting to rumors with schizophrenia. Bitcoin's price drops below $43,000, and traders don't seem to be reacting much to the ETF rumors. This "sell-the-news" effect is not a sign of a positive This isn't a sign of a strong trend. It's the sound of uncertainty. It's like the crowd leaving the theater before the play is over.
And there's more. The delay in the Ethereum ETF by American bank TD Cowen disrupts market optimism. It shows that not everything is good in the rules, and not every opportunity in crypto will be accepted. This news alone could start a bearish turn. It may lead to $40K support being seen as a trapdoor to lower lows.
The market sentiment has become neutral after ETF, and it's like the calm before a storm. The dip under $42,000 is not a discount—it's a warning shot. Traders eyeing support at $40K might find themselves not at the bottom. It's a precipice with a market ready to capitulate.
Now, let's turn our gaze to the two scenarios laid out before us in the tale of two charts.
If we keep going down, the Wyckoff Method shows that we're in for a big surprise. This isn't a methodical distribution. It's a tactical retreat by smart money. Retail holders are left to play a game of musical chairs. The music has stopped and there are no chairs left.
If we surge up, breaking resistance, the recent top at $49,000 might be just a pitstop. It could be an 'Upthrust' (UT), followed by 'Upthrust After Distribution' (UTAD). This wouldn't show a market going back, but a market getting ready to jump past $50,000 like it's easy.
The market is at a turning point. Big forces are pulling in different directions. BlackRock getting into Bitcoin could have a big impact, either positive or negative. It's like a potential leader who might guide people in the wrong direction. The charts show caution. The news indicates change. The best strategy prepares for volatility with strong logic and risk control.
Prepare for the worst, hope .
To make the most out of it, just remember that the world of cryptocurrency is always changing. So, stay grounded and embrace the fact that change is the only constant. In the world of cryptocurrency, things always change. There's a chance of a big crash or a huge rally, and the risks are very high.
The aggressive play here involves more than just looking at charts and news. It's also about understanding the situation. The smart money, the institutions—they're making their moves in broad daylight. If the market goes up again, BlackRock's buying of a lot of Bitcoin when the price was low could be a great move. It shows that the current prices might just be a phase before a big increase. This isn't just how the market works. It's like a very risky game of chess, but with digital money.
If the market turns bearish, the Wyckoff structure may lead to a landslide. This would serve as a stark reminder of the law of action and reaction. The crash, if it comes, will not be gentle. When the market turns and support levels weaken, it will show how harsh markets can be.
In this volatile mix, the news of ETF approvals and delays is like throwing gasoline on the fire. It's the kind of fuel that could either ignite the market to new heights or burn the hopes of many to ashes. After ETF approvals and delays, market sentiment is uncertain. It can either lead to a big change or signal a surprising move.
This is not a market for the indecisive. This market is for people who are brave enough to handle a big drop or are sure enough to go along with a big increase. As news comes out, the story changes, and this makes the future of Bitcoin more mysterious.
In such times, be aggressive. Don't just watch, be actively prepared for contingencies. Keep your eyes wide open, your decisions data-driven, and your investments diversified. The big crash, if it's on the horizon, will be ruthless. The big rally, if it's in the cards, will be exuberant. The winner pivots with precision. They are backed by insight and unshaken by crypto currents. Proceed with caution, but proceed nonetheless. This is the world of crypto. Here, the courageous succeed and the cautious endure. Choose your path wisely.
school.stockcharts.com
Wyckoff
#USDTD #AltCoins #Short #Crypto #Market #DUMP #Soon #Eddy#USDTD #AltCoins #Short #Crypto #Market #DUMP #Soon #Eddy
(("My analysis of USDTD and altcoins is like this, from my point of view, it is possible to track the position of short selling transactions on most currencies in the market."))
- What do you think? Have you checked USDTD in this time frame? Write me in the comments!
- My confirmations are based on Wykoff's review of Bitcoin in multi-time frame, as well as Bitcoin and Tether's Dominance review.
Its about Wyckoff ;-)
(( BTC/USD )) latest update link :
#TOTAL2 #AltCoins #Short #Crypto #Market #DUMP #Soon #Eddy#TOTAL2 #AltCoins #Short #Crypto #Market #DUMP #Soon #Eddy
(("My analysis of Total 2 and altcoins is like this, from my point of view, it is possible to track the position of short selling transactions on most currencies in the market."))
- What do you think? Have you checked Total 2 in this time frame? Write me in the comments!
- My confirmations are based on Wykoff's review of Bitcoin in multi-time frame, as well as Bitcoin and Tether's Dominance review.
Its about Wyckoff ;-)
(( BTC/USD )) latest update link :
#BONE #Wychoff #Distribution #Eddy#BONE #Wychoff #Distribution #Eddy
(("All the relevant areas and explanations on the chart are clear and clear, the trading setups need to get confirmation to enter, if you don't know how to get a trigger and confirm entering into transactions, this analysis is not suitable for you, the above analysis is for professionals. and if you are a beginner, my suggestion is that you don't destroy your capital and first learn technical analysis and basic trading along with psychology and risk and capital management from reputable sources and courses, and then enter the financial markets."))
(("The above analysis and setups and points and areas are combined with most of the combined styles such as price action, supply and demand, RTM, ICT and also with the analysis of important indicators such as Dominance Tether and Bitcoin.
If you are familiar with the mentioned styles and know how to get approval to enter the above styles, use the above analysis.
This is not an investment proposal and only my opinion, please act based on your experience and decisions."))
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I also suggest you to view my #Analysis of the Phases of Richard #Wyckoff #Accumulation & #Distribution on #Bitcoin #Currency from the link below :
#BTC #Bitcoin #Final #Update #Wychoff #Distribution #Eddy
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Analyses of Trading Ranges By : Dr. #Eddy SunShine 👨🏻💻 1/16/2024 ❤️
I LATE PUBLISHED THIS, BTC wyckoff schematic #1:Brace yourselves! The chart is a crystal clear warning siren for an impending crash in the Bitcoin market. What we're seeing here is the textbook setup of a Wyckoff distribution phase, a manipulative masterpiece played out by the smart money to trap unsuspecting retail investors before the rug is pulled.
Phase A was just the smart money dipping their toes, testing the waters for liquidity. Phase B, the buildup, was where they revved up the engines, creating a façade of a bullish frenzy, drawing in the crowd with the hype. But then, boom! Phase C hit with the Outthrust After Distribution (UTAD), the classic fake-out move. It's the smart money whispering, 'This is as high as we go, folks,' before they start offloading their bags onto the latecomers.
Now, as we edge into Phase D, the Sign of Weakness (SOW) has revealed itself. This isn't just a dip to buy; it's a cliff edge. The Last Point of Supply (LPSY) attempts are feeble, and the demand is drying up faster than a puddle in the Sahara.
And what's next? Phase E. The markdown. The avalanche. This isn't just going to be a correction; it's shaping up to be a freefall. The volume profile is whispering secrets of a sell-off that's ready to stampede. Those support lines? They'll snap like twigs under a boot. We're not just talking about testing lows; we're talking about rewriting the bottom line.
This is the moment where fortunes are lost, where the latecomers holding the line get burned. The chart is screaming caution. It's not a matter of if, but when. The crash is looming, and it's going to be cataclysmic. Don't be the one left holding the bag when the smart money has cashed out and left the building. This is your warning!
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TO BE FORMAL AND PROFESSIONAL.
Here's a breakdown of the typical phases and events in the Wyckoff Schematic #1, as they might relate to your chart:
Phase A: This phase marks the stopping of the prior uptrend. Key elements include:
Preliminary Supply (PSY): Where large interests begin selling the coin and volume increases.
Buying Climax (BC): Where demand is fully satiated, and there is heavy buying from the public, leading to a sharp rally and subsequent sell-off.
Automatic Reaction (AR): The immediate sell-off after the buying climax, setting a range for the trading range (TR).
Phase B: This phase is characterized by building a cause for the new downtrend.
Secondary Test (ST): Where the market tests the supply and demand balance at the upper and lower bounds of the TR established in Phase A.
Upthrust (UT): A test above the TR that fails and falls back into the range, showing that demand is not strong enough to break through the supply.
Phase C: This phase indicates the readiness to leave the TR and begin a new downtrend.
Upthrust After Distribution (UTAD): A sign of weakness, where price goes above the TR again but attracts heavy selling from the smart money, confirming they are distributing their holdings.
Phase D: The price begins to move downward as the distribution phase is ending.
Sign of Weakness (SOW): Price action that moves below the support level of the trading range, suggesting that supply is overwhelming demand.
Last Point of Supply (LPSY): The final attempt to move up into the TR, which fails due to lack of demand.
Phase E: This is the markdown phase where the price declines.
The chart depicts a series of lower highs and lower lows, consistent with a bearish trend.
The annotations on your chart suggest that the analyst is anticipating a bearish market based on the Wyckoff distribution phases. They have marked out specific events and are forecasting a continued downtrend into the future phases (D and E). It's important to note that while Wyckoff's methodology is respected among some traders, it's not infallible and should be used in conjunction with other forms of analysis and risk management techniques.
The chart also includes some narrative annotations about market events, like SEC announcements, which the analyst is using to support their interpretation of the price action within the framework of the Wyckoff Method. These external factors are used to give context to the price movements and potentially indicate the actions of institutional investors.
I hope I was early to warn everyone but I did, just forgot to do it here in TradingView.
Similarities to Wyckoff AccumHere's that image again as I am seeing it, it usually gets messed up when publishing a chart so I've saved it here:
Though this is not coming out of a downward move, the pattern looks incredibly similar to Wyckoff Accum Schema # 1, and just coming out of the Spring, moving towards LPS and then SOS.
We could see a strong move up for ETH here. I have shown some bearish outlooks in the past, this is a bullish one. Bitcoin Dominance is also looking bearish atm, while Other.d is looking bullish. Eth.d is a bit neutral however.
[ETH/USDT] Potential accumulationSince Dec 9 ethereum has been ranging providing no clear direction until Jan 3 where extremly high volume attempt to break the low of Dec 18 but with a increase demand coming in and close insinde of the trading range for me this was my confirmation of a potential accumulation if the biggest volume ever since Aug 2023 could not take the market lower then we have a strong demand holding the market
LOOP INDUSTRIES / WYCKOFFThe great Wyckoff cycle is over, the new great cycle is near, interesting purchase in DCA for the long term. Canadian company in the recycling of plastic waste with a unique and revolutionary technology. Some scandalous articles in the press here and there, which given the share price seems to me to be a possible manipulation to keep the price low (personal opinion). Visible bullish divergence. Possible double bottom. Very interesting...
LINK - Wyckoff Reaccumulation Schematic#LINK
Link is following a texbook Wyckoff Reaccumulation Schematic as seen in one from an ETH chart on the left, which includes an Elliott's Wave ABC then another, once liquidity has been grabbed on the 3rd pop up.
* Note there is usually a variance between the schematic images when compared to real time Cryptoland due to what I assume is high leverage stop hunting.
UNI - Wyckoff Accumulation SOS/LPS + Volume#UNI
I love to see these #Wyckoff Schematics play out, so profitable if you just add patience to your toolkit.
This is exactly what we want to see, after the breach of the heaviest #resistance on chart, then that coil up resting on top of the now #support followed by that retest with heavy #volume sling shotting PA into infinity.
If you missed the Spring and Adam & Eve at the bottom, and somehow all the signs before this, you still have time, you know what to do...
EWT - Wyckoff Accumulation + Volume #EWT
This beautiful falling wedge or #bullflag has all the mechanics of a #Wyckoff Accumulation Schematic built into it, which can be seen by #volume tells in all the right places.
After The low was breached note the negligible #volume, then observe the volume on the first solid bullish candle to break through the #wedge. What we want to see after is the follow-through retrace candles reaction, and not just the #volume, but the fact it snatched the stops on the candle a month before it.
Pair that all with my favorite leading indicator, #OBV, which has already breached the last swing.
I like this PA...
#ETHBTC - #Wyckoff & #Volume & #Divergences & #Sentiment#ETHBTC
The Broadening Wedge has a track record of being one of the most brutal patterns for emotional Traders to navigate, but if we peel back the layers to see what's happening of actual importance, that's when things start to get really interesting, IMO.
This is very possibly a textbook Wyckoff bottom. It's presenting all the signs of what we want to see plus #ETHBTC has a history of combining extremely low sentiment with ruthless patterns.
But once again just focus beyond the noise of PA and we can see what is volume or lack thereof in all the right places, paired with stacked divergences.
Nothing is 100% certain in this place, but based on probabilities gauged over history and the rest of the story, I know what I'm doing...
LINK - The Stair Step + Double Bounce#LINK
After a beautiful ABC correction after an Impulse wave #Link has taken multiple shots and cracked up through resistance and is now coiling up and stair stepping on top of support.
When PA is as clean as this, with volume in all the right places. Yes there is incredible potential for clean gains, but more than that it's a spectacular example to learn from IMO.
Such a beautiful illustration of how support & resistance work. I hope this helps provide a lens through the noise of PA so you can truly appreciate what's taking place in plain sight and hopefully also how to use this as a map for future gains.
MATIC - Wyckoff SOS + LPS Before Blast Off#MATIC
Textbook Wyckoff Accumulation Schematics, with ideal volume profiles, showing the standard "Sign of Strength" (SOS) Flag while absorbing all the fear sales into one "Last Point of Supply" (LPS) before go time.
Hope this helps...
REACCUMULATION FOR MATIC!The gains for MATIC can be huge.
After overcoming the weekly ichimoku baseline and taking it as support, MATIC should now go to higher levels.
The 1.618 level is already a 170% gain. Unless the pattern would become a distribution one, which right now does not seems to be, MATIC can really exploit.
The X.618 religion is back!
Bears, if you're reading this it's too late We are in a highly volatile, increasingly risky environment with overwhelming bearish sentiment.
- What the news has to say: "no hope, inflation, recession, bear market, war, fire, brimstone, kim kardashian tho, inflation, recession, etc..." (I can paraphrase: FUD)
- What the math has to say: Most likely path over the next few weeks is an explosive run to 430s to complete X2 of a triple combo, followed by one more leg down to around 348 to complete Z - and thus, complete corrective wave IV. After that we will see a new All time high in wave V in late 2022/early 2023.
...This is nothing new, a lot of ideas are circulating on tradingview by those that know Elliot Wave very well - and until I get confirmation otherwise I have to agree that is the most likely case. This post, however, is meant to accomplish 2 goals:
1) Emphasize/make everyone aware that we are set up to see some very explosive upside over the next few weeks, starting Tuesday July 5th. I'm not talking about the usual pop and drop everyone has been conditioned to expect these last 6 months. Rather, at least +50 points of squeeze-the-FUD upside is about to unfold and be realized by the end of July/early August. I have reason to believe, based on the math, that the big money has been carefully setting the stage for this run. The objective is to test their horns... see if they can leverage this negative environment to mark this up and invoke chaos - which they'll use to their advantage to test carryover demand and confirm the overhanging supply has been absorbed as my chart suggests.
2) Present an alt. path to new highs in August 2022. I'm talking MOASS. Without going into detail on the math here, I must admit the setup is both sophisticated and familiar - evidence to the trained eye that bears might be in some serious trouble. Talk is cheap though, I said everything I want to say in the chart, now here is my prediction... I suggest you mark this post in case what I'm indicating does indeed play out, you'll want to know the timeline, roadmap, and time frames to look for:
- We will gap up above 384.11 Tuesday morning, 7/5. We won't look back.
- We will continue to fill the gap from 396-401, and end next week (7/8) above 404
- We will then have until July 12th to make it over 424.12 for the alt. path to remain on the table... There is something that occurs above 424 (given it is hit by 7/12) that will trigger explosiveness to break above the blue trendline across the higher high we ran into early June? What is that something? It has to do with the determinant of a linear system composed of retracement and extension pairs shifting orientation in space (within the temporal constraints defined by implicit and explicit supply/demand equilibrium points... if you figure it out then you're welcome, you've tasted the forbidden fruit). From here I'll give the conditional expectations:
~ If we clear 424 by 7/12 the next stop will be 463.69 by July 25th, followed by a test of the blue trendline for support, and then if we make above 463-468 by July 25th we will see something that I'd expect to go down in history as the Mother Of Really Even All Squeezed Shorts... Led by GME (no cap)... and resulting in a new All time High sometime in August 2022. If this occurs I expect consolidation at 505, 524, and then the beginning of the true distribution phase around 536 where wave V should complete before we enter the real recession, the real bear market, the real long winter.
~~ If we get rejected at or before 424 and it fails to breach it by 7/12, then we will still likely make one more leg up to the 430s where they will distribute at a much smaller scale before throwing in the towel (for now) and preparing for a Z wave down to around 348.. from there they will devise a successful accumulation scheme to end this wave IV once and for all in September - November 2022. *Note: they already failed once back in March, they failed because it couldn't breach the critical level (at the time) of 468, and then it failed to hold 458, so they had to scramble and distribute down that disgusting Y wave until the overhanging supply was completely absorbed (that intersection of the light purple and light blue trendlines formed back in September/October of 2021 is what I'm referring too - that intersection of the 2 at the end of last week is what I'm seeing as confirmation its been dealt with. Assume they condition their algos to adapt like they condition retail to buy dips and sell pops at the perfectly worse time - an operant response.
If you can figure out whats going on in the busy regions then great for you. If not, don't worry, you can FOMO soon like everyone else with or without eyes. Love you too.
Heed,
XOX Guardian
yP.S. we are from the dimension that exists in Y our future, translated in O ur past via R.E.M. within the dimension that exists in Y our present... or did
SPX Structure This can be summarized as a distribution at the end of 2021 which produced a corrective markdown (I do not have the EWC labled but this top was a wave III peak). The equilibrium point/level produced from the supply/demand trendlines off the distribution phase is right at the pre-covid peak - which indicates there is support right below the 2022 low. I am expecting that to be the end of wave IV for the following reasons (this implies the bottom is in):
A larger accumulation structure has been forming as an inverse head and shoulders.
- the left shoulder was formed from minor accumulation in summer 2022 with an equilibrium level in the 3700s
- the markup from this did not exhibit in distribution before it got hit to form the head, which indicated significant further downside likely not in the cards or there would have been re-distribution.
- head formed in the 3400s near the major late 2021 distribution equilibrium, and there was another round of minor accumulation before the pop in Fall 2022, with an equilibrium level formed in the low 4000s
- The most recent selloff came after minor distribution at the EQ level fromed by the head, but did not establish its own specific equilibrium point as a funnel/expanding structure
- now we are showing minor accumulation with support exactly at the equilibrium level formed by the left shoulder (as well as support at the late 2021 distribution trendline)
Expect markup to begin with a break above ~4100 in 2023 (likely next couple months). Targets are given - end goal is 5000s with a point target of 5300 and possible highs in the 5600s as the wave V completes and they begin true major distribution preceeding the corrective wave after 13 year bull market. Peak will likely be in 2024
Wyckoff simplified + entries & exitsI'm going to explain Wyckoff to you in a simplified manner and show you how you can use it for entries & exits.
What is Wyckoff?
Large market orders by huge entities come in gradually. If the market only consisted of buying and selling, it would be too easy to make money as it would be too predictable. So instead, orders are injected into the market via an accumulation process (i.e. Wyckoff schematic)
Basically, the big players of the market try to take out the retail traders’ stoplosses by injecting orders into the market (to move price toward the stoplosses and hit them). They inject these orders gradually (to avoid being predictable and to trick the retail traders).
Basic Wyckoff schematic
This is a bearish Wyckoff schematic:
Let’s break this down.
BC - This stands for Buying Climax. The Buying Climax marks the end of buying and is confirmed by an Automatic Rally.
AR - This stands for Automatic Rally. This is when price goes in the opposite direction of the climax. In this case, the AR was to the downside. This confirms that it is the end of buying because it shoots straight down (indicating strong selling pressure). This confirms the Buying Climax by going into the Discount level (bottom 25%) and by being bigger than all the other downward pullbacks which happened before.
Test - Price goes close to the Climax point and re-tests it. Then, traders take sells because they think that because of the AR, price would go down. The traders think that price went up for the last time and will finally go down. Because of their sell orders, price falls a little.
Purge - The big players try to take out the traders’ sell orders by moving price up to the Climax point. They push price a little higher than the Climax point to take out all the stoplosses.
RTO - This stands for Return to Origin. Because of the purge, traders think that price broke structure to the upside. So, they buy which makes price form the RTO. They’re trying to make price revisit the Climax point. Then, price moves lower and they get stopped out again.
SOW - This stands for Sign of Weakness. When structure breaks to the downside after the RTO, this shows that selling pressure is coming in.
LPS - Last Point of Support. This is the consolidation which must happen before price breaks out of the consolidation to convince you that price is bearish and no longer bullish.
Here is how a bullish Wyckoff structure looks like:
Let me explain this once more so that you understand it.
The main trend was a down trend on the left side of the chart. Then, price had a strong bull move up (the AR) which means that there were buy trades (i.e. Automatic Rally). That confirms that there was a Selling Climax (i.e. SC) and that it’s the end of selling (because if it wasn't the end of selling, the AR wouldn't go so high)
After that, price came down to re-test the Selling Climax zone (which is called the Test). Then, traders took a buy because they thought that because of the AR, price would be going up.
Then the big players pushed price down a little lower than the Selling Climax to hit the buy orders' stoplosses which forms the Purge.
After that, because the Purge happened, it made traders think that price broke structure to the downside which led them to sell. Then, price went down because of those sell orders (forming the RTO) and rejected from the Selling Climax (price went up).
Price rejected from that level because there were buy orders from the big players which made price go up. Since price went up, those sell trades got taken out. Because price went up, it formed an SOS (i.e. Sign of Strength). It means that the selling pressure had weakened, and the buying pressure had strengthened.
Finally, price formed a consolidation (i.e. LPS) which tricked traders again into thinking that price will go down. The traders sold and the big players pushed prices up to hit their stoplosses one last time.
This is a basic Wyckoff pattern in a nutshell.
You’ll be more likely to predict the Wyckoff pattern in its later stages when some parts of it have formed. The earlier it is, the riskier it’ll be.
Advanced Wyckoff schematic
Let’s talk about the 2nd variation of the Wyckoff pattern. This is the same as the basic Wyckoff schematic except that the Test will go beyond the BC/SC. It will look like a purge, but it won’t be. It will be a fake purge. Then, after the Test, the actual Purge will happen.
This is to trick most of the Smart Money Concept traders into thinking that the purge has already happened and that price will form an RTO and go lower (in case of a bearish schematic). The traders will then sell. The big players will then push price up to break the Test and form the actual Purge. All the traders will get wiped out because price has hit their stoplosses.
In case of a bullish schematic, the traders will think that the purge has already happened and that price will form an RTO and go higher. They’ll buy. The big players will then push price down to form the actual Purge and take out the buy orders.
Here is how it looks like:
Structures
Before I explain how you can use this to trade, let’s first understand market structures. There are 2 types of market structures which I’ll be talking about: Support & Resistance and Supply & Demand.
There’s also 1 more thing to understand: ranges. A range is the area between the latest swing high and swing low.
👉 Supply & Demand Structure
This is when price forms a new range by forming a new high or a new low. Then, it comes back into the old range.
When price comes back into the range, it finds more buy orders to push it up again.
When price comes back into the range, it finds more sell orders to push it down again.
👉 Support & Resistance Structure
This is the same thing as the Supply and Demand structure except that price will not come back into the range but instead bounce off of the highs/lows.
Let’s see how we can use structures with Wyckoff to take entries and exits. We’re first going to use the Supply & Demand structure. Then, we’ll see how we can use the Support & Resistance structure.
Supply & Demand Entry
We’re going to take entries using the Supply & Demand structure. This strategy uses 2 timeframes to take entries (Macro & Micro). We’re going to look at a buy example. For a sell, simply use the opposite logic.
The main idea is to trade with the trend. So, first go to a higher timeframe and find a Supply & Demand structure. Then, look for when price forms a new low/high. We can see that, in this case, price formed the first lower low.
Now, we know that because this is a Supply & Demand structure, price will go back up into the range. So, to take advantage of this up move, we can take a buy.
We first have to know where to buy. So, go down to a lower timeframe. Then, look for a bullish Wyckoff schematic. Look for the Selling Climax (i.e. SC). This means that it is the end of the downtrend. Then, wait for price to form the AR, Test, Purge and RTO. You can buy when the RTO or LPS happens.
You can exit when you see a bearish schematic. This bearish schematic has to reach the Premium level. First, find the Premium level by going back to the higher timeframe and taking the upper 25% of the down leg. Then wait for price to form a bearish schematic and reach that premium level.
The Premium level will be reached when price forms a Purge (during a bearish schematic). We can see (in the picture below) that during the bearish schematic, price did Purge and break into the Premium level. Exit your buy here.
There’s also another way you can take a trade (look at the picture below). You can sell during the bearish schematic. Sell when you see the RTO or LPS (during the bearish schematic). You can exit at the Purge of the next bullish schematic.
It is more preferable to sell than to buy, in this case, because the larger trend on the higher timeframe is a bearish Supply & Demand structure. So, price is going down on the larger trend. When you trade with the trend, the probability of your trade giving profits is higher.
This was in case of a sell. If the larger trend was bullish, a buy would’ve been taken at the RTO or LPS of a bullish schematic. Then it can be exited at the Purge of the next bearish schematic.
Support & Resistance Entry
To trade a Support & Resistance structure, we do the exact same things we did for the Supply and Demand structure. The only difference is that instead of looking for a Purge near the upper 25%/bottom 25%, look for it where price will react (near the red line).
After you’ve found it, you can enter your trade when the RTO, SOW or LPS comes.
This is in case of a buy. For a sell, use the opposite logic.
Like I’ve said before, you can also take a sell to trade with the trend on the higher timeframe. You can sell during the bearish schematic. Sell when you see the RTO or LPS (during the bearish schematic). You can exit at the Purge of the next bullish schematic.
If the larger trend was bullish, a buy would’ve been taken at the RTO or LPS of a bullish schematic. Then it can be exited at the Purge of the next bearish schematic.
I hope you found this useful!