1. Market Context
On the 4H chart of image, Silver is trading under a long-term descending trendline. After a temporary relief rally, the price is facing strong rejection at the local resistance zone near 71.263 (marked "A Few Seller").
2. Psychology & Price Trap Analysis
• Chasing Away Buyers (Stop Hunt): Retail traders have been buying the horizontal support at 63.377 (marked "Buyer"). Their stop losses are clustered heavily below 63.377 down to 55.846. Market makers are highly likely to drive the price downward to sweep these stop losses, forcing early buyers out of their positions.
• Trapping Sellers (The Bear Trap): As the price aggressively breaks below 63.377, it will look like a massive bearish breakdown. This clean breakdown will induce retail breakout traders to chase the momentum and open heavy short positions near the absolute bottom (55.846). Once they are fully trapped, a rapid V-shape recovery will be triggered.
3. Trade Setup (The Liquidity Run)
We target a short position to capitalize on the downward momentum generated by the retail buyers' stop-run.
• Entry: 65.606 (Selling the local resistance rejection)
• Stop Loss (SL): 71.263 (Placed safely above the local swing high)
• Take Profit (TP): 55.846 (Targeting the major support sweep/Buyer Wait Here zone)
• Risk-to-Reward Ratio (R:R): Approx 1.72:1
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.