NAS100USD: Are We Seeing a False Bullish Break?Greetings Traders,
In today’s analysis, NAS100USD continues to follow bearish institutional order flow, providing an opportunity to capitalize on the current market narrative. While the overall trend remains bearish, recent price action has displayed a bullish break of structure. However, I interpret this as a false break of structure, supported by the following evidence:
Key Observations:
1. Engineered Retail Resistance:
Institutions have created a retail resistance zone with relatively equal highs. This formation entices retail traders to sell at the resistance level, placing their stop losses above it.
These stop losses are viewed as buy stops by institutions, representing willing buyers at premium prices. Institutions capitalize on this by order pairing—selling their positions against the retail buy stops.
2. Institutional Order Pairing Logic:
Large funds require opposing liquidity to fill orders efficiently without slippage. To achieve this, institutions manipulate the market by engineering liquidity through patterns such as resistance zones or equal highs.
After selling at premium levels, institutions aim to buy back positions at discount prices, targeting sell stops and liquidity pools below.
Trading Outlook:
Given this institutional behavior, my interpretation is to anticipate further bearish movement . With institutions likely targeting sell-side liquidity at discount levels, I am focusing on the sell-side liquidity pool as the primary target for this setup.
If you have any insights, questions, or analysis, feel free to share them in the comments below. Let’s collaborate and refine our strategies together.
Kind Regards,
The Architect
