🕛 TOPDOWN Analysis - Preparing for a Potential Reversal
Overview: The market is showing signs of a potential reversal, with the yearly low almost confirmed. A long-wick pinbar, often indicative of retests and undercuts, has appeared. Vigilance is required for any reversal candles on lower time frames. On the monthly time frame, a robust demand area marked by a significant pinbar and heavy volume at the bottom suggests a potential reversal. The monthly close also forms a monthly engulfing candle, and the last liquidity sweep is evident. The weekly time frame corroborates the notion of a confirmed low and an inducement at a critical first-order block. This marks the third pullback and hints at a weak impulsive leg. Additionally, the weekly record session count aligns with this analysis.
😇 7 Dimension Analysis
Time Frame: Daily
1️⃣ Swing Structure: Bearish
🟢 Structure Behavior: Indicative of a Breakout from Sideways (BoS).
🟢 Swing Move: The corrective move has nearly reached its target level.
🟢 Inducement: 50% correction completed.
🟢 Internal Structure: Awaiting high confirmation.
🟢 Supply Area: Located here.
Key Points:
Trendline breakout is awaited.
Resistance with a liquidity candle.
A fake breakout with a V-shaped move in the extended market.
No follow-through at resistance, marked by a strong reversal candle at the Change in Polarity (CIP) area.
2️⃣ Pattern
🟢 CHART PATTERNS
Continuation
Rising Wedge
Shakeout Continuation
🟢 CANDLE PATTERNS
Notable Observations:
Record session count after strong bull session candles, followed by a reversal candle.
A long-wick, strict candle.
Momentum indicators indicate both a fakeout and FOMO.
Further insights may emerge during opening sessions.
A blended combo of 2 classic reversal patterns.
3️⃣ Volume:
Volume during the fakeout was not substantial.
4️⃣ Momentum RSI:
🟢 Zone: Superbullish
5️⃣ Volatility Bollinger Bands:
🟢 Middle Band: Signifying a reversal expectation.
🟢 Walking on the Band: Possibly in the final stages; a minor correction may be in order.
6️⃣ Strength ADX:
Bulls are currently dominant, with a minor correction noted.
7️⃣ Sentiment ROC:
The AUD is stronger than CHF.
✔️ Entry Time Frame: H1
✅ Entry TF Structure: Bearish
☑️ Current Move: Corrective at the daily master time frame and impulsive at H1.
✔ Support Resistance Base: H1 trendline is broken.
☑️ Candles Behavior: Momentum-indicated corrections.
☑️ FIB Trigger Event: Completed
☑️ Trend Line Breakout: Confirmed
☑️ Final Comments: Sell for correction.
💡 Decision: Sell
🚀 Entry: 0.5870
✋ Stop Loss: 0.5933
🎯 Take Profit: 0.5751
😊 Risk to Reward Ratio: (Ratio not provided)
🕛 Expected Duration: 1:2.32 (Risk-Reward ratio not specified)
SUMMARY: The analysis suggests a potential reversal scenario based on various technical factors. The market shows signs of weakening bullish momentum and the emergence of bearish patterns. Awaiting a trendline breakout is advisable, and a sell strategy for correction is proposed. Specific entry, stop-loss, and take-profit levels are provided, although the risk-reward ratio is not explicitly mentioned.
Overview: The market is showing signs of a potential reversal, with the yearly low almost confirmed. A long-wick pinbar, often indicative of retests and undercuts, has appeared. Vigilance is required for any reversal candles on lower time frames. On the monthly time frame, a robust demand area marked by a significant pinbar and heavy volume at the bottom suggests a potential reversal. The monthly close also forms a monthly engulfing candle, and the last liquidity sweep is evident. The weekly time frame corroborates the notion of a confirmed low and an inducement at a critical first-order block. This marks the third pullback and hints at a weak impulsive leg. Additionally, the weekly record session count aligns with this analysis.
😇 7 Dimension Analysis
Time Frame: Daily
1️⃣ Swing Structure: Bearish
🟢 Structure Behavior: Indicative of a Breakout from Sideways (BoS).
🟢 Swing Move: The corrective move has nearly reached its target level.
🟢 Inducement: 50% correction completed.
🟢 Internal Structure: Awaiting high confirmation.
🟢 Supply Area: Located here.
Key Points:
Trendline breakout is awaited.
Resistance with a liquidity candle.
A fake breakout with a V-shaped move in the extended market.
No follow-through at resistance, marked by a strong reversal candle at the Change in Polarity (CIP) area.
2️⃣ Pattern
🟢 CHART PATTERNS
Continuation
Rising Wedge
Shakeout Continuation
🟢 CANDLE PATTERNS
Notable Observations:
Record session count after strong bull session candles, followed by a reversal candle.
A long-wick, strict candle.
Momentum indicators indicate both a fakeout and FOMO.
Further insights may emerge during opening sessions.
A blended combo of 2 classic reversal patterns.
3️⃣ Volume:
Volume during the fakeout was not substantial.
4️⃣ Momentum RSI:
🟢 Zone: Superbullish
5️⃣ Volatility Bollinger Bands:
🟢 Middle Band: Signifying a reversal expectation.
🟢 Walking on the Band: Possibly in the final stages; a minor correction may be in order.
6️⃣ Strength ADX:
Bulls are currently dominant, with a minor correction noted.
7️⃣ Sentiment ROC:
The AUD is stronger than CHF.
✔️ Entry Time Frame: H1
✅ Entry TF Structure: Bearish
☑️ Current Move: Corrective at the daily master time frame and impulsive at H1.
✔ Support Resistance Base: H1 trendline is broken.
☑️ Candles Behavior: Momentum-indicated corrections.
☑️ FIB Trigger Event: Completed
☑️ Trend Line Breakout: Confirmed
☑️ Final Comments: Sell for correction.
💡 Decision: Sell
🚀 Entry: 0.5870
✋ Stop Loss: 0.5933
🎯 Take Profit: 0.5751
😊 Risk to Reward Ratio: (Ratio not provided)
🕛 Expected Duration: 1:2.32 (Risk-Reward ratio not specified)
SUMMARY: The analysis suggests a potential reversal scenario based on various technical factors. The market shows signs of weakening bullish momentum and the emergence of bearish patterns. Awaiting a trendline breakout is advisable, and a sell strategy for correction is proposed. Specific entry, stop-loss, and take-profit levels are provided, although the risk-reward ratio is not explicitly mentioned.