1:6 RR Sell Setup for GBPCAD
😇 7 Dimension Analysis
Time Frame: H4
Swing Structure:
The current swing structure is bullish with a recent liquidity sweep followed by an inducement. A deep corrective swing move is highly anticipated, especially after the inducement pullback, which has solidified the bearish internal structure. The extreme Point of Interest (POI) and Order Block (OB) located in the discounted zone is the target area for the corrective move, making this a whale scoop entry model.
Resistance has been established with a fake breakout, increasing the likelihood of a bearish move.
Pattern:
🟢 Chart Patterns:
Reversal: Double Top and Trendline Breakout on the bearish side, along with a Shakeout, indicating a potential reversal.
🟢 Candle Patterns:
A long wick spinning top candle has appeared, rejecting the POI, followed by a series of momentum candles, including a bearish engulfing candle.
The Narrow Range 7 candle pattern has also given a bearish breakout, supporting the potential downward move.
Volume:
🟢 Outside of the fake-out candle, there hasn't been significant volume, suggesting that the highest volume candle might be a decision point where big players have initiated sell positions. Following their lead could be advantageous.
Momentum RSI:
🟢 The market is transitioning from a super bullish zone to a sideways phase, with a high probability of a range shift. The bearish divergence in RSI, coupled with loud moves, further supports this scenario.
Volatility Bollinger Bands:
🟢 Contraction is just beginning at the POI, and the next steps could involve a squeeze breakout and walking on the band, likely on the lower side. The M pattern and upper band puncher in the Bollinger Bands also suggest a forthcoming bearish trend.
Strength ADX:
ADX is a lagging indicator, but all other parameters point towards an anticipated bearish move, even if ADX is not yet confirming it.
Rating: ⭐⭐⭐⭐ (4 Stars)
Probability: 60%
This trade setup has a moderate probability, indicating a cautious but potentially rewarding bearish opportunity.
✔️ Entry Time Frame: H4
✅ Entry TF Structure: Bullish (this is a counter-trade)
☑️ POI: Swing Liquidity Sweep
💡 Decision: Initiate a Sell position.
🚀 Entry: 1.78300
✋ Stop Loss: 1.7875
🎯 Take Profit: 1.7479
😊 Risk to Reward Ratio: 6RR
🕛 Expected Duration: 7 Days
SUMMARY:
This H4 analysis suggests a counter-trade opportunity in a bullish structure that is showing signs of a potential bearish correction. The confluence of a liquidity sweep, inducement, and rejection at the POI, along with supporting chart and candle patterns, volume analysis, and RSI divergence, all point to a possible bearish move. The setup is rated with a 60% probability, indicating a moderate level of confidence. The trade should be monitored closely, especially around the entry and stop-loss levels, to capitalize on the expected move.
Time Frame: H4
Swing Structure:
The current swing structure is bullish with a recent liquidity sweep followed by an inducement. A deep corrective swing move is highly anticipated, especially after the inducement pullback, which has solidified the bearish internal structure. The extreme Point of Interest (POI) and Order Block (OB) located in the discounted zone is the target area for the corrective move, making this a whale scoop entry model.
Resistance has been established with a fake breakout, increasing the likelihood of a bearish move.
Pattern:
🟢 Chart Patterns:
Reversal: Double Top and Trendline Breakout on the bearish side, along with a Shakeout, indicating a potential reversal.
🟢 Candle Patterns:
A long wick spinning top candle has appeared, rejecting the POI, followed by a series of momentum candles, including a bearish engulfing candle.
The Narrow Range 7 candle pattern has also given a bearish breakout, supporting the potential downward move.
Volume:
🟢 Outside of the fake-out candle, there hasn't been significant volume, suggesting that the highest volume candle might be a decision point where big players have initiated sell positions. Following their lead could be advantageous.
Momentum RSI:
🟢 The market is transitioning from a super bullish zone to a sideways phase, with a high probability of a range shift. The bearish divergence in RSI, coupled with loud moves, further supports this scenario.
Volatility Bollinger Bands:
🟢 Contraction is just beginning at the POI, and the next steps could involve a squeeze breakout and walking on the band, likely on the lower side. The M pattern and upper band puncher in the Bollinger Bands also suggest a forthcoming bearish trend.
Strength ADX:
ADX is a lagging indicator, but all other parameters point towards an anticipated bearish move, even if ADX is not yet confirming it.
Rating: ⭐⭐⭐⭐ (4 Stars)
Probability: 60%
This trade setup has a moderate probability, indicating a cautious but potentially rewarding bearish opportunity.
✔️ Entry Time Frame: H4
✅ Entry TF Structure: Bullish (this is a counter-trade)
☑️ POI: Swing Liquidity Sweep
💡 Decision: Initiate a Sell position.
🚀 Entry: 1.78300
✋ Stop Loss: 1.7875
🎯 Take Profit: 1.7479
😊 Risk to Reward Ratio: 6RR
🕛 Expected Duration: 7 Days
SUMMARY:
This H4 analysis suggests a counter-trade opportunity in a bullish structure that is showing signs of a potential bearish correction. The confluence of a liquidity sweep, inducement, and rejection at the POI, along with supporting chart and candle patterns, volume analysis, and RSI divergence, all point to a possible bearish move. The setup is rated with a 60% probability, indicating a moderate level of confidence. The trade should be monitored closely, especially around the entry and stop-loss levels, to capitalize on the expected move.
Penafian
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