BOS CHOCH Trend Change Identification

Aktualisiert

Trend change identification using SMC which works at the best irrespective of the support and resistance/ breakout/ trendline/ patterns.

Anmerkung

On 27th April 2022 9:30 market broke the previous structure indicating bullish trend continuation.

Anmerkung

At 10:45 market made a high of 1345.
Many of the breakout traders would have bought at 1330 assuming a breakout would occur.
We would wait for the orderblock (OB) to be tapped which in this case did not for a better entry. Market made a low near our orderblock resulting in hitting the SL's of the breakout traders. Grabbing liquidity and taking the price higher.

Anmerkung

At 28th April 13:00 market made a high of 1335.45
1) Which did not cross the previous high of 1345 which indicates structure is going bearish. (x)
2) Market would eventually push higher taking up that high of 1345 but not closing above it (LIQUIDITY GRABBING) which can indicate it's not a valid BOS but structure may reverse.

Anmerkung

At 29th April 19:15 the huge bearish candle broke the structure which resulted in CHoCH (Change of Character) means that the trend has reverse and now we need to look for sell entries.
Plotting the Fib Levels from 1326 to 1300 we get out Optimal trade entry
There are three scenarios for entry.
1) OB
2) Fib levels (.79 , .705)
3) Imbalance
4) Orderflow
I'm still studying for where what to use while entering.

AguilarPD

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