⌛1 Minute Timeframe Analysis By Setup
Disclaimer: The information shared here is based on personal experience and observations. It is not intended as financial advice or as a sole basis for making trading decisions. The market is highly unpredictable, and past performance does not guarantee future results. Always do your own research, consider multiple factors, and consult with a professional before making any financial decisions. Trading involves significant risk, and it is essential to manage risk appropriately to avoid significant losses.
Would you take this setup? Take a look at the last two candles, forming bullish engulfing, then a bullish marubozu. Now let's see the result.
When it hits the entry, it forms three white soldiers, very common bullish patterns and reversal signal. But why it does not work? I will not trick you with any external timeframes for analysis, we will just use 1minute timeframe alone.
Three lower lows indicate a bearish trend at the moment. The last low was created during a strong bearish move, which is evident from the consecutive red candles. The price stopped making new lows and began to rise. It consolidated briefly at this level, but the selling side is still dominating. The price moved so quickly that it created several fair value gaps and order blocks.
As a short trader, you want to identify where the majority of supply resides. The nearest but strongest level for a short trade is at the last lower high, which combines fair value gaps with order blocks. You always want to ride the wave where the majority of money is going, aiming for the furthest possible level.
The price has indeed hit the target level, but when you know it may go even further, it's better to think, "It doesn't matter. I got what I wanted, and it was calculated. With a solid set of rules, I can find this pattern many times, whenever it appears."
Please refer to my previous article titled as "Thoughts That ALL Traders MUST Have: The Hidden Battle in Every Trade". I shared a lot of things about Smart Money Concept deeper about Fair Value Gap, Order Blocks, and Liquidity.
