Breakdown:
We can see price created equal highs and equal lows, there was then an impulsive price movement to the upside which has broken several pieces of structure as well as sweeping much of the sell-side liquidity (x). The movement has left behind many price inefficiencies, calling for price to fill them.
Next, I've moved to a lower time frame to further identify structure. Price was creating higher highs and higher lows, creating liquidity beneath this price movement. This was also swept, clearing out some more buy side liquidity and breaking market structure.
I will be looking for sells IF...
- Price sustains previous highs AND
- Price creates one more lower low AND
- The sentiment remains at a SELL bias (currently 56/44 long/short)
We can see price created equal highs and equal lows, there was then an impulsive price movement to the upside which has broken several pieces of structure as well as sweeping much of the sell-side liquidity (x). The movement has left behind many price inefficiencies, calling for price to fill them.
Next, I've moved to a lower time frame to further identify structure. Price was creating higher highs and higher lows, creating liquidity beneath this price movement. This was also swept, clearing out some more buy side liquidity and breaking market structure.
I will be looking for sells IF...
- Price sustains previous highs AND
- Price creates one more lower low AND
- The sentiment remains at a SELL bias (currently 56/44 long/short)