EURJPY - Bullish Continuation Toward 160.850OANDA:EURJPY is trading within a well-defined ascending channel, with price action respecting both the upper and lower boundaries. The recent bounce off support suggests buyers are maintaining control, supporting a potential continuation of the uptrend.
As long as the price remains above the support level and the channel's lower boundary holds, the bullish structure remains intact.
A potential upside target is 160.850, aligning with the upper boundary of the channel. A break and close above this level could signal further bullish momentum.
However, a breakdown below the support zone would invalidate the bullish scenario and may open the door for a deeper pullback.
Remember, always confirm your setups and trade with solid risk management.
Best of luck!
SMC
Mastering ICT Concepts: The Ultimate Trading Strategy GuideA lot of people are drawn to ICT trading concepts because they offer a deep understanding of how the markets truly work. With this guide, I want to explain the most popular ICT strategies in a simple and detailed way to help traders navigate these concepts effectively. The Inner Circle Trader (ICT) methodology offers a suite of trading strategies that delve into market mechanics, focusing on institutional behaviors and liquidity dynamics. This guide explores five prominent ICT strategies: Fair Value Gaps (FVG), Power of Three (PO3), Inversion Fair Value Gaps (IFVG) with Liquidity Sweeps, Breaker Blocks, and the Silver Bullet Strategy. Each section provides an in-depth explanation, trading approach, key considerations, and designated spots for illustrative images.
🔍 1. Fair Value Gaps (FVG)
A Fair Value Gap (FVG) represents a price imbalance created when the market moves rapidly in one direction, leaving a gap between consecutive candlesticks. This gap signals inefficient pricing, which the market tends to revisit later to balance liquidity. Understanding FVGs is crucial as they reveal hidden institutional footprints.
How to Trade:
Identification: Spot an FVG when there is a three-candlestick formation where the second candle creates a gap between the high of the first candle and the low of the third candle.
Retracement Expectation: The market typically seeks to fill these gaps as it rebalances price inefficiencies.
Entry Strategy: Wait for price to return to the gap and enter in the direction of the initial impulse. Confirm the trade with market structure shifts or other confluence factors.
Targets: Use previous highs/lows, liquidity zones, or equilibrium levels (50% of the FVG) as potential targets.
Key Considerations:
Timeframes: Higher timeframes like 1-hour, 4-hour, and daily yield more reliable signals.
Volume Confirmation: High volume during the initial impulse strengthens the likelihood of a retracement.
Partial Fills: The market may not always fill the entire gap.
⚡ 2. Power of Three (PO3)
The Power of Three (PO3) describes how institutional players manipulate price action through three key phases: Accumulation, Manipulation, and Distribution. This strategy highlights how smart money engineers liquidity and misleads retail traders before delivering the intended price move.
How to Trade:
Accumulation Phase: Identify consolidation zones where price ranges sideways, often before major sessions (London or New York).
Manipulation Phase: Wait for false breakouts or stop hunts where price temporarily breaks out from the range before reversing.
Distribution Phase: Enter the trade in the opposite direction of the manipulation, targeting the liquidity created during the false move.
Entry Confirmation:
Market structure shifts after the manipulation phase.
Bullish or bearish order blocks aligning with the intended direction.
Fair Value Gaps in the distribution phase.
Key Considerations:
Patience: This strategy often requires waiting several hours for all three phases to complete.
Liquidity Zones: Look for equal highs or lows near the range to anticipate the manipulation move.
Time Windows: PO3 often plays out during high-volume sessions.
🔄 3. Inversion Fair Value Gaps (IFVG) with Liquidity Sweeps
Inversion Fair Value Gaps (IFVG) are advanced price inefficiencies that act as dynamic support or resistance zones. When price fills a traditional FVG, that zone can later serve as an IFVG—particularly when aligned with liquidity sweeps.
How to Trade:
Identify Original FVG: Locate an FVG that has already been filled.
Liquidity Sweep Trigger: Wait for price to sweep liquidity above or below a key level.
Inversion Zone: When price returns to the previous FVG, treat it as a new support or resistance zone.
Entry Confirmation: Watch for market structure shifts or rejection candles at the IFVG.
Key Considerations:
Confluence Zones: Combine IFVG with liquidity sweeps and order blocks.
Patience: Wait for price action confirmation before entering.
Stop Placement: Place stops below the IFVG in bullish setups or above in bearish setups.
🧱 4. Breaker Blocks
Breaker Blocks are zones where previous support or resistance levels are invalidated by a liquidity sweep, only to become reversal zones. They represent areas where smart money accumulates orders before delivering price in the opposite direction.
How to Trade:
Identify Liquidity Sweeps: Spot areas where price breaks above or below a key high/low before reversing.
Breaker Formation: The candle that invalidates the liquidity sweep forms the Breaker Block.
Entry Strategy: Wait for price to retrace into the Breaker Block and confirm the trade with rejection candles or market structure shifts.
Targets: Previous liquidity pools or opposing order blocks.
Key Considerations:
Higher Timeframes: Use 1-hour or 4-hour charts for the best results.
Volume Analysis: High volume during the breaker formation strengthens the signal.
Risk Management: Place stops beyond the breaker boundary.
🎯 5. Silver Bullet Strategy
The Silver Bullet Strategy is a time-based model designed to capitalize on institutional price delivery patterns during specific one-hour windows. This strategy focuses on liquidity sweeps and Fair Value Gaps within these timeframes.
How to Trade:
Time Windows: Target these key one-hour sessions:
London Open: 03:00 AM – 04:00 AM EST
New York AM Session: 10:00 AM – 11:00 AM EST
New York PM Session: 02:00 PM – 03:00 PM EST
Identify Liquidity Zones: Look for equal highs/lows or session highs/lows.
Execute Trades: Enter trades when price sweeps liquidity and rejects from an FVG or Breaker Block within the Silver Bullet window.
Targets: Use opposing liquidity pools or session extremes.
Key Considerations:
Strict Timing: Only trade within the designated time windows.
Confluence Factors: Combine with market structure shifts and order blocks.
Risk Management: Place stops beyond liquidity sweep wicks.
Conclusion
Mastering ICT trading strategies requires patience, precision, and continuous practice. These five strategies—FVG, PO3, IFVG with Liquidity Sweeps, Breaker Blocks, and the Silver Bullet—provide a comprehensive framework to align with institutional price delivery. Use confluence factors and practice in demo environments before applying these methods in live markets.
Happy Trading!
Note: This guide is for educational purposes only and not financial advice.
__________________________________________
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USDCHF - Sell Opportunity After Support BreakOANDA:USDCHF has broken below a key support zone, indicating a potential shift in momentum. The price may now retest this zone, which previously acted as support and could serve as resistance, aligning with a potential bearish continuation.
If sellers confirm resistance at this level, the price is likely to decline further toward the 0.88640 target, which serves as a logical level for this setup. Conversely, a break back above the zone could signal a potential bullish reversal.
Traders should watch for bearish confirmation signals, such as bearish engulfing candles, strong wicks rejecting the resistance zone, or increased selling volume, before considering short positions. Let me know your thoughts or any additional insights you might have!
EURAUD Bullish Continuation - Will Buyers Push Toward 1.70220?OANDA:EURAUD is currently trading within an ascending channel, maintaining a strong bullish structure. The price has broken above a key resistance zone and may now pull back for a retest. This area previously acted as resistance and may now serve as support, aligning with a potential bullish continuation.
If buyers confirm support at this level, the price is likely to move upward toward 1.70220, which aligns with the upper boundary of the channel. Conversely, a failure to hold support could signal a potential bearish shift.
Traders should monitor for bullish confirmation signals, such as bullish engulfing candles, strong wicks rejecting the support zone, or increased buying volume, before considering long positions.
Let me know your thoughts or any additional insights you might have! 🚀📈
PALLADIUM at Key Support Level – Rebound Toward 956$?OANDA:XPDUSD has reached a significant support zone, marked by prior price rejections and strong buying pressure. This area has historically acted as a key demand zone, indicating the potential for a pullback if buyers regain control.
The current market structure suggests that if the price confirms a rejection from this support zone, there is a high likelihood of an upward move. I anticipate that if rejection occurs, the market may head higher toward the 956.000 level, which represents a logical target within the current market structure.
This setup reflects the potential for a retracement after an impulsive move, supported by the confluence of previous price behavior and the current structure. If you agree with this analysis or have additional insights, feel free to share your thoughts in the comments!
USD/JPY Buys | 15M TimeframeCurrent orderflow/price action is bullish. I will be looking for price to retrace into this zone which is a 50-61.8% Fibb golden zone pullback and also would fill a 15m FVG and tap into a 15 OB. I will then scale down to the 1-5m timeframe and look for an entry if it presents itself.
Gold resuming it's usual bullish narrativeAs we always say, after a bullish daily close, we will remain bullish until a bearish daily close. With that being said, there was def a short opportunity today after reaching our buyside goal.
We will continue to track the development here and keep you on point with expectations.
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EURUSD – Bullish Continuation Toward 1.05820OANDA:EURUSD has broken above a key resistance zone, which has now flipped to support, aligning with a potential bullish continuation. The recent retest of this level held successfully, indicating strong buyer interest and reinforcing the bullish outlook.
With momentum favoring the upside, the next logical target is 1.05820, aligning with the upper boundary of the ascending channel. As long as the price remains above the support, the bullish bias stays intact.
Gold back to it's normal bullish programAs we always say, after a bullish daily close, we will remain bullish until a bearish daily close. With that being said, there was def a short opportunity today after reaching our buyside goal.
We will continue to track the development here and keep you on point with expectations.
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NAS & Indices are continuing to meltAll the indices are still seeking correction of inefficiencies existing in the sellside. There isn't much else to be said of this current situation until we start receiving bullish closes on higher time frame 4H/Daily.
Be sure to share this with a friend. I assure you this is trustworthy information and levels 🫡
USDJPY Bearish Momentum - Will It Reach 147.640?OANDA:USDJPY is currently trading within a descending channel, indicating a strong bearish structure. The price has broken below a key support zone and may now pull back for a potential retest. This level previously acted as support and could now serve as resistance, aligning with a possible bearish continuation.
If sellers confirm resistance at this zone, the price is likely to move downward toward the 147.640 target. However, a failure to reject this level could indicate a potential shift in momentum.
Traders should monitor for bearish confirmation signals, such as bearish engulfing candles, strong wicks rejecting the resistance zone, or increased selling volume, before considering short positions.
Let me know your thoughts or any additional insights you might have!
AUDCHF: Bearish continuation - Will it reach 0.55190?OANDA:AUDCHF is trading within a well-defined descending channel, with price action respecting both the upper and lower boundaries. The recent rejection from the resistance zone suggests sellers are maintaining control, supporting a potential continuation of the downtrend.
As long as the price remains below the resistance level and the channel's upper boundary holds, the bearish structure remains intact.
A potential downside target is 0.55190, aligning with the lower boundary of the channel. A break and close below this level could signal further bearish momentum.
However, a breakout above the resistance zone would invalidate the bearish scenario and may indicate a potential reversal or deeper pullback.
Always confirm your setups and trade with solid risk management.
Best of luck!
Gold Futures - Potential Springtime ReversalGold futures have been on a rally, but recent price action suggests a potential shift. Could we be witnessing a Wyckoff distribution forming?
Understanding Wyckoff Distribution
The Wyckoff distribution pattern occurs when large institutions begin selling off their positions to retail traders before a downtrend begins. This phase is often characterized by sideways price movement, false breakouts, and key "Signs of Weakness" (SOW) that hint at an impending sell-off.
A Recent Sign of Weakness in Gold Futures
A possible sign of weakness in gold futures was observed recently when prices gave a false break out at what retail traders would label "key levels".
Historical Seasonal Trends: Spring Reversals
Looking at historical data, Moore Research Center, Inc. (MRCI.com) has tracked seasonal gold price patterns for over 40 years. Their findings indicate that gold often experiences price reversals during the spring months. This aligns with the idea that we could be heading into a seasonally weak period, increasing the likelihood of a distribution phase playing out.
What Traders Should Watch For
As Gold rallies back towards a new all time high we should be aware that it may be just a false break to form the final phases of a distribution schematic. This would form an upthrust, and upthrust after distribution, followed by a sharp retracement back into the range and ultimately leading to a sell off and market reversal.
Final Thoughts
While nothing is certain, the combination of the financial institutions footprint and historical seasonal data suggests gold traders should proceed with caution. Whether you’re trading futures or investing in physical gold, staying aware of these patterns can help you make informed decisions.
Do you think a Wyckoff distribution is playing out in gold? Share your thoughts in the comments!
How should we analyze ETHUSDT? I have written about the reasons Ethereum has been the most talked-about asset during this downturn.
↪ Each time it showed a decline, the drop was sharp and rapid, consistently forming new lows. As a result, it has significantly lost trust among retail investors who were primarily focused on buying.
Here is the daily chart of Ethereum.
The overall structure and range are formed using two supply zones as key levels along with a single range.
I am currently using two key levels as my primary reference:
1. The support zone that held during the decline in early February.
2. The resistance zone that formed when the previous low was broken.
✔ Despite the new low being established, I have set the range as shown above because it is still too early to confirm a complete breakdown of the lower range.
✔ As shown in the chart above, we have yet to see a full-body candle close below the lower range. Additionally, the key level at the bottom continues to provide support.
If we do see a decisive full-body close below the lower range and the key level no longer holds as support, we can conclude that the liquidity sweep at the lower range has failed to remove sufficient liquidity.
A Range Sweep typically occurs when there is a well-defined range with clear highs and lows. It refers to a scenario where price temporarily breaks out (or breaks down) beyond this range but closes back inside, leaving a wick.
This movement goes by different names, such as Range Sweep, Stop Hunt, and Fake Out, but they all serve a distinct purpose.
The Role of Smart Money in Liquidity Sweeps
Market-controlling entities, often referred to as Smart Money, tend to move in the opposite direction of retail traders. Their primary objective is to eliminate as many retail positions (liquidity) as possible before triggering a sharp price reversal.
Retail traders generally follow simple trading patterns:
• They tend to chase price moves, entering long positions as the price rises and short positions as it falls.
• They often place stop-loss orders at the most recent swing high (for shorts) or swing low (for longs).
Smart Money exploits this predictable behavior by targeting these stop-loss orders to clear liquidity and then reversing the price direction.
Key Liquidity Concepts
• BSL (Buy-Side Liquidity): Liquidity from short positions’ stop-loss orders resting above key highs. If price touches these levels, a reversal may occur.
• SSL (Sell-Side Liquidity): Liquidity from long positions’ stop-loss orders resting below key lows. If price touches these levels, a reversal may occur.
Liquidity Sweep in Action
Liquidity sweeps follow this mechanism:
1. Price breaches a key level (either a high or a low).
2. Stop-loss orders trigger, increasing liquidity.
3. Smart Money absorbs liquidity and reverses price direction.
Understanding this concept and identifying liquidity sweeps in real-time can significantly enhance your market analysis and trading strategies. Keep an eye on these setups, as they can provide high-probability trade opportunities.
The explanation about liquidity sweeps became a bit lengthy in the middle.
Ultimately, I still see Ethereum’s current price action near the daily low as part of an ongoing liquidity removal process. If it breaks above the trendline resistance and the key level within the internal range supply zone, signaling a trend shift, we could target a move up to the range high of $4,100.
▩ Key Takeaways from This Perspective: The Method and Purpose of Liquidity Sweeps
To successfully trade the movements that follow liquidity sweeps, it’s crucial to understand that positions should not be taken during the liquidity removal process itself.
If liquidity is being swept on a higher time frame (HTF), the top-down analysis approach should be used to identify reversal price action on the middle and lower time frames (MTF, LTF) before entering a trade.
In my next analysis, I will likely discuss how to correctly follow price reversals after liquidity sweeps and how to position accordingly.
Thank you.
EURAUD Bullish Momentum in Play — Targeting 1.69500OANDA:EURAUD is trading within a well-defined ascending channel, with price action respecting both the upper and lower boundaries. The recent bounce off the midline suggests buyers are maintaining control, supporting a potential continuation of the uptrend.
As long as the price remains above the support level and the channel's lower boundary holds, the bullish structure remains intact.
A potential upside target is 1.69500, aligning with the upper boundary of the channel. A break and close above this level could signal further bullish momentum.
However, a breakdown below the green support zone would invalidate the bullish scenario and may open the door for a deeper pullback.
Remember, always confirm your setups and trade with solid risk management.
Best of luck!
USDCAD Bullish Continuation - Will Buyers Push Toward 1.45660?OANDA:USDCAD is currently trading within an ascending channel, maintaining a bullish structure. The price has broken above a key resistance zone and is now pulling back for a potential retest. This level previously acted as resistance and may now turn into support, aligning with a bullish continuation.
If buyers confirm support at this zone, the price is likely to move upward toward the 1.45660 target. However, a failure to hold this level could indicate a potential shift in momentum.
Traders should monitor for bullish confirmation signals, such as bullish engulfing candles, strong wicks rejecting the support zone, or increased buying volume, before considering long positions.
Let me know your thoughts or any additional insights you might have! 🚀