I am explaining why the market made this move. If you are familiar with 2 candle rejections and the FVG (fair value gap), you’ll understand. On Thursday, the market reached the 2482 level, and the following 12 candles broke its wicks. This situation is known as a liquidity sweep or hit. After these 12 candles, the market created a high-pressure candle moving downward on the 1H t imeframe, showing its bearish move.
How do I know the market moves? The answer is by identifying the FVG and the break of market structure on smaller timeframes.
When we view the same chart on the 15-minute timeframe, you can clearly see that the market reached its previous order block. It created a fair value gap (FVG), moved downwards, created a new FVG, retested the FVG, and then moved downwards again. You can easily understand this pattern by looking at the arrows on the chart. This sequence illustrates the market's behavior and how it respects previous levels of support and resistance.
W e are dedicated to helping you understand how the market functions and predict its next movements. On the 15-minute timeframe chart, observe the big arrow for a clearer picture. You'll notice that the market reaches its previous order block and creates a fair value gap (FVG) during its downside move. Then, it forms another FVG, retests it, and continues to move downwards.
In this scenario, you can clearly see the break of structure followed by the market testing its FVG. When the market breaks the structure with a significant candle (forming an FVG), it often returns to test this FVG before continuing in its initial direction. By observing these patterns, we can make well-informed trading decisions.see the big arrow
For instance, when the market creates an FVG, we can expect it to return to this level before resuming its trend. This knowledge allows us to anticipate movements and potentially secure 100 pips. By carefully analyzing these market behaviors, you can gain a deeper understanding and improve your trading strategy.
For easier chart analysis, we recommend using the 5-minute, 3-minute, or 1-minute timeframes to minimize your stop loss. Refer to the attached image for clarity. On the 1-minute timeframe, you can see that when the market breaks our structure and reaches the order block, it touches this point, creates a new fair value gap (FVG), and then moves downwards rapidly.
In such scenarios, we can execute trades with better control over our stop loss. By closely observing these shorter timeframes, you can identify key market movements more precisely. When the market breaks the structure with a strong move, reaches the order block, and forms an FVG, it often signals a continuation in the same direction.
This allows traders to anticipate and act quickly, securing potential profits while keeping risks low. Using these lower timeframes helps to better manage trades, providing more opportunities for timely entries and exits. This approach enhances your ability to adapt to market changes swiftly and effectively.
0 Comments