Analyzing this chart using Smart Money Concepts (SMC) and Inner Circle Trader (ICT) methodology involves identifying key institutional price levels, market structure shifts, liquidity zones, and order blocks. Here’s a breakdown:
Step 1: Market Structure Analysis
Current Structure: The market is in a bullish trend with a clear break of previous
Higher highs (HH) and higher lows (HL) indicate institutional order flow is bullish.
Key Levels:
Swing High: 0.00005666 (potential liquidity grab above this level).
Swing Low: 0.00004349 (recent low with possible liquidity resting below).
Step 2: Liquidity Zones
1. Buy-Side Liquidity (BSL):
Resting above the swing high at 0.00005666.
Price may revisit this zone to trap breakout buyers and grab liquidity before reversing.
2. Sell-Side Liquidity (SSL):
Resting below 0.00004349.
Price might retrace to this level to mitigate an order block or fill imbalances (Fair Value Gaps).
Step 3: Key Institutional Concepts
1. Order Blocks:
Look for the last bearish candle before a significant bullish move.
Bullish Order Block Zone:
Price around 0.00004472 aligns with the EMA (7) and could act as support for a retracement.
2. Fair Value Gaps (FVG):
Gaps between wicks of consecutive candles suggest imbalance:
FVG Zone: Between 0.00004530 and 0.00004823.
Price might retrace here before continuing upward.
3. Optimal Trade Entry (OTE):
Using Fibonacci from the recent swing low (0.00004349) to swing high (0.00005666):
62%-79% retracement aligns with 0.00004500–0.00004650, a high-probability entry zone.
Step 4: Best Entry Points
Bullish Trade Setup:
Scenario: Wait for price to retrace into the order block or FVG zone.
Entry Zone:
Between 0.00004472 (order block) and 0.00004530 (lower FVG boundary).
Confirmation:
Watch for bullish rejection (e.g., pin bar, bullish engulfing, or ICT accumulation).
Stop-Loss:
Place SL slightly below 0.00004349 (recent low and SSL zone).
Take-Profit:
TP1: 0.00005666 (retest liquidity high).
TP2: Higher extension, e.g., 0.00005875 or beyond.
Bearish Countertrend Setup:
Scenario: If price breaks above 0.00005666, it may grab liquidity and reverse.
Entry Zone:
Near or slightly above 0.00005666.
Confirmation:
Look for bearish divergence in RSI or bearish candle patterns (e.g., evening star).
Stop-Loss:
Place SL above the liquidity grab (e.g., 0.00005800).
Take-Profit:
TP1: 0.00005013 (mid-EMA zone).
TP2: 0.00004823 (upper FVG boundary).
Step 5: Execution Plan
1. Watch Price Action:
Use a smaller time frame (e.g., 15m or 1h) to confirm setups at key levels.
2. Entry Triggers:
Look for ICT accumulation or rejection patterns at the identified zones.
3. Risk-to-Reward (RR):
Aim for at least 1:3 RR on bullish trades.
Scale out profits as price approaches TP1.
Example Chart Workflow:
Bullish Workflow:
Price retraces to 0.00004530 (FVG or order block).
Bullish rejection appears → Enter long.
SL: Below 0.00004349.
TP1: 0.00005666, TP2: Extended target.
Bearish Workflow:
Price breaks above 0.00005666 and fails to sustain.
Bearish rejection forms → Enter short.
SL: Above 0.00005800.
TP: Drop to 0.00005013 or deeper.
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