XLM Short setup explained- Entry $0.58485

After examining higher time frames, we can see XLM is inside the prior weekly supply zone which led to a BoS and large, sustained move to the downside. Inside the weekly supply zone we can locate a daily supply zone also responsible for the drop. XLM tapped the very bottom of this daily supply zone with its upper wick on this most recent move up as seen in the chart.

Zooming into the H4, we can see a clear failure to gain, hinting at a potential microtrend reversal. Further confirmation provided by price rejecting the level lost and being unable to close above the lower high. Price action remains bearish and we see range expansion with increased volatility come into play in the final 9-10 candles. This provides enough information for us to confidently trade our setup , which is explained further inside chart.

Let's see what happens.

Good luck, be safe, trade smart.


-Platoon