06.01.2025 - Will BOME drop to the FVG to launch the rocket?Current Situation on BOME:
1) Accumulation Zone:
We were in a large accumulation zone (marked in blue) – someone was loading bags before the move.
2) Breakout of the Accumulation Zone:
The accumulation zone was broken, and stop losses were collected (marked with the line labeled $$$) because many traders shorting placed their stop losses there.
3) Double Top Setup:
During the stop loss collection, a strong DOUBLE TOP setup was formed. Many traders seeing such a setup start shorting and place their stop losses above the DOUBLE TOP.
4) BTC Influence:
Something interesting happened here: BTC started pumping upward, so BOME followed. What was the goal? Obviously, to collect liquidity – taking money from stop losses.
5) Important Detail:
The price collected stop losses only with the wick and closed below the DOUBLE TOP. My guess is that after this brief breakout of the DOUBLE TOP, many traders initiated long positions – after all, it seemed we were heading "to the moon." However, I suspect this is a manipulation. Those who opened longs likely set their stop losses below the last low (the so-called Higher Low).
Possible Scenario to Watch:
6) Liquidity Below HL:
If the breakout in point 5 was manipulation, we should drop at least to the HL to collect the liquidity below it.
7) Change of Character (ChoCh):
If we drop below the ChoCh (Change of Character) and then briefly move upward above that level to collect at least one Inducement (i.e., liquidity from local shorts – this liquidity acts as fuel), we would have a clear path for further declines.
8) Target Below Accumulation Zone:
At this stage, we need to consider where the price might fall. The best spot would be below the accumulation zone, where there is a lot of $$$ to grab. Additionally, collecting liquidity from the lower side would provide another strong confirmation for future upward movement. This confirmation is called a Double Purge – wiping out both shorts (point 2) and longs. This collects all the available money.
9) FVG Zone:
If we drop below the accumulation zone and collect stop losses, we will be close to the area containing the last FVG (Fair Value Gap). Closing part of this gap (or the entire gap) would serve as another confirmation that it’s time to launch the rocket.
Important Note:
For points 7, 8, and 9 to occur, favorable conditions on BTC will be necessary.
