I'm all for understanding why and how trades don't go as you planned them.
So let's take a look at $BTC, where I thought we would tap the nPOC and 0.618 level at least before any further move up or down from there.
I hope this can help you with your own trading!
First of all, we had a LTF range that was drawn at the top of the MTF range
Remember how the nPOC and 0.618 fib level were just resting above this zone?
When breaking down the price action, it was clear in hindsight that one of @RektProof's MTF plays were in effect
In terms of resistance, you can see that the previous bullish orderblock becomes resistance
Another way to view this if you are having trouble visualising bearish set ups is to invert your chart.
Looking at the below chart, if you are currently used to bullish runs, you now have a familiar-ish setting at the click of a button
So conclusion?
I didn't zoom out enough to see the play that had happened. The liquidity had been taken from range high for a run to range low (and lower), but I was focused on the typical nPOC and 0.618 level first.
All good though - got to debrief & continue to grow!
And lastly guys, you know that I'm partnered with @Delta_Exchange - they are a great team, & superb to work with
We have a Fair Value Gap that is presented to us in the form of a bullish $500 candle, where a portion of the candle's body has no exploratory wick or body from another immediate candle to balance price.
Liquidity
Note the liquidity in the form of buyside liquidity has been claimed also from the range high already.
We'd typically expect that with a range, that we alternate between range high and low for liquidity.
I wanted to share this with you to show how a narrative can be built.
You know the drill, you can use this across #cryptocurrencies or any market, from $BTC, $ETH, $SOL $OMG $DOGE, hell, even $SHIB (shameless tags!)
Let's take a look:
The first key item to be drawn to here is the double bottom at range low.
Traders place their stops just below these levels, assuming that price will rise, which creates a liquidity pool which is subsequently taken out for a move upwards.
We can then see just above mid range, that a Fair Value Gap is apparent, even though price has traded close to filling this area.
I wanted to share this $ZIL trade with you so that you can hopefully learn some fundamental Price Action concepts
Here we'll explore:
- The Range
- FVG
- nPOC
- MSB
- Entry
- Psychology
Use these methods on $BTC any #cryptocurrency from $ETH, $SOL, $MATIC, $FTM $SHIB
Range:
I started off with drawing the range
You can see the notations on the drawings. Basically, I'm looking for the market structure before the sell off, and then the wicked candle that shows a liquidity tap that we assume will be run
FVG:
Then we're looking for a FVG, Fair Value Gap, where price trades through an area very quickly, leaving a 'gap' that opposite trending PA will 'fill'.