Market Structure
The overall structure on this chart is clearly bearish. You can see price has been making lower highs and lower lows over the entire visible period. The descending trendline drawn from the highs around 115.80 area confirms that sellers have been in control. Price is currently trading around 114.00 after a sharp drop, and that bearish momentum has been strong and consistent.
Notable Patterns and Levels
There are two key zones marked on this chart. The first is a green accumulation zone around the 114.50 to 115.10 area which is exepcted to be swept above before entry in the second is a supply zone sitting just above it around 115.10 to 115.50. Expecting price to potentially retrace up into the overlap of those two zones before continuing low. The descending trendline also passes right through that area, which adds confluence to the idea that any bounce into that region would likely be met with selling pressure. Price has recently sold off hard from the 115.00 area and is now sitting near 114.00 to 113.70, which appears to be a fresh low.
Bias
The bias here is sell on a retracement. This is not a chase-the-move-down setup. The smart approach based on what is drawn here is to wait for price to pull back up into that 115.00 to 115.30 zone where the green box and the trendline overlap and acts as dynamic resistance. That confluence area is where you would look for bearish confirmation before entering short.
Risk Management Tip
If you take a sell from that retracement zone, your stop loss should be placed above the supply zone, ideally above 115.55 or the most recent swing high to give the trade room to breathe. Target the recent lows around 113.60 to 113.70 for a solid risk to reward of at least 1 to 2 or better.
Key Takeaway
Do not sell into a low after a big move has already happened. Let price come back to you. The best short entries on a bearish market come from retracements into supply, not from chasing the candles down. Patience is your edge here.
The overall structure on this chart is clearly bearish. You can see price has been making lower highs and lower lows over the entire visible period. The descending trendline drawn from the highs around 115.80 area confirms that sellers have been in control. Price is currently trading around 114.00 after a sharp drop, and that bearish momentum has been strong and consistent.
Notable Patterns and Levels
There are two key zones marked on this chart. The first is a green accumulation zone around the 114.50 to 115.10 area which is exepcted to be swept above before entry in the second is a supply zone sitting just above it around 115.10 to 115.50. Expecting price to potentially retrace up into the overlap of those two zones before continuing low. The descending trendline also passes right through that area, which adds confluence to the idea that any bounce into that region would likely be met with selling pressure. Price has recently sold off hard from the 115.00 area and is now sitting near 114.00 to 113.70, which appears to be a fresh low.
Bias
The bias here is sell on a retracement. This is not a chase-the-move-down setup. The smart approach based on what is drawn here is to wait for price to pull back up into that 115.00 to 115.30 zone where the green box and the trendline overlap and acts as dynamic resistance. That confluence area is where you would look for bearish confirmation before entering short.
Risk Management Tip
If you take a sell from that retracement zone, your stop loss should be placed above the supply zone, ideally above 115.55 or the most recent swing high to give the trade room to breathe. Target the recent lows around 113.60 to 113.70 for a solid risk to reward of at least 1 to 2 or better.
Key Takeaway
Do not sell into a low after a big move has already happened. Let price come back to you. The best short entries on a bearish market come from retracements into supply, not from chasing the candles down. Patience is your edge here.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.