Technical Breakdown
1. Bearish Phase (The Setup)
Head and Shoulders Pattern: A clear reversal pattern formed at the top of the range (Left Shoulder, Head, Right Shoulder).
Breakout: Price broke below the neckline (marked by the red circle/breakout label), triggering a sharp, impulsive move downward to establish the local swing low.
2. Bullish Transition & Reversal
Ascending Support Channel: Price found buyers at the bottom and established a rising trendline (red support channel), validated by three distinct touches (indicated by the teal arrows).
Market Structure Shift (MSS): The previous bearish trend was invalidated as price aggressively broke above the recent swing high, shifting the market bias from bearish to bullish.
Break of Structure (BOS): A subsequent continuation break of structure occurred, confirming the upward momentum.
3. The Current Entry Trigger & Targets
H4-FVG (Fair Value Gap): Price has pulled back directly into a 4-hour Fair Value Gap, which sits immediately above the ascending support channel. This confluence makes the zone a high-probability demand area.
Projected Price Action: The expectation is for price to reject this combined support zone (FVG + Trendline) and push higher.
Target: The ultimate target is the previous swing high liquidity pool (marked by the green target box).
Trading Idea Parameters
Direction: Long (Bullish)
Entry Zone: Inside the H4-FVG zone, aligning with the ascending trendline support.
Invalidation / Stop Loss: A sustained close below the ascending channel support line.
Take Profit (Target): The recent structural high liquidity zone (indicated by the green Target box).
1. Bearish Phase (The Setup)
Head and Shoulders Pattern: A clear reversal pattern formed at the top of the range (Left Shoulder, Head, Right Shoulder).
Breakout: Price broke below the neckline (marked by the red circle/breakout label), triggering a sharp, impulsive move downward to establish the local swing low.
2. Bullish Transition & Reversal
Ascending Support Channel: Price found buyers at the bottom and established a rising trendline (red support channel), validated by three distinct touches (indicated by the teal arrows).
Market Structure Shift (MSS): The previous bearish trend was invalidated as price aggressively broke above the recent swing high, shifting the market bias from bearish to bullish.
Break of Structure (BOS): A subsequent continuation break of structure occurred, confirming the upward momentum.
3. The Current Entry Trigger & Targets
H4-FVG (Fair Value Gap): Price has pulled back directly into a 4-hour Fair Value Gap, which sits immediately above the ascending support channel. This confluence makes the zone a high-probability demand area.
Projected Price Action: The expectation is for price to reject this combined support zone (FVG + Trendline) and push higher.
Target: The ultimate target is the previous swing high liquidity pool (marked by the green target box).
Trading Idea Parameters
Direction: Long (Bullish)
Entry Zone: Inside the H4-FVG zone, aligning with the ascending trendline support.
Invalidation / Stop Loss: A sustained close below the ascending channel support line.
Take Profit (Target): The recent structural high liquidity zone (indicated by the green Target box).
Trade active
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Join our Free Daily Signals Channel – Targeting 500+ Pips!
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Join: t.me/TechnicalPipssSignal20
We share high-quality trading setups every day to help you stay ahead in the market.
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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.