It’s 8am and how the price reacted within a period of 8hrs is that price made a turning point at the bearish FVG but made another turning 50% of the bullish inverse head and shoulders range which took the price to the upside trading higher then the bearish FVG. This caused price to break out of the M15 downtrending channel.
Lesson from setup: What I learnt from the setup so far is that when price is headed somewhere as a result of a FVG and there don’t seem to be another FVG anywhere, it means that the price is poised to create the same range it created before a high and a low would be created after a range, vice versa for a bearish range would be ‘the low and high created after the range’.
With the current M15 zoomed in setup, I see that for the past hour and a couple of minutes counting, price has been bearish as a result of mitigating a bearish Order block. Now as opposed to the previous bearish Order block where price made a turning point an hour after mitigating the bearish OB understanding that it happened because of the imbalance created by the price on its way to mitigate the bearish OB; this current bearish OB to be mitigated did not leave any bullish imbalance. There is no imbalance created anywhere below the 4805.031 & 4762.193 price levels which together create a zone. In that zone however, there is a lot of sell side liquidity.
The beauty of a top down analysis is that directional biases correspond in different timeframes.
The thing about how I trade is that I cannot take a risk of placing a trade without know the range that I’m trading whether it’s a bullish or bearish range regardless of its length. Right now, price has mitigated the bearish order block and has been bearish ever since. Two things may play out here.
1:Price might go back to mitigate the bearish FVG it created on the M15 with this bearish range; have an imbalance in the bullish range where price mitigated the bearish FVG first, followed by the bullish imbalance(FVG) then take the price to trade higher to the bearish unmitigated FVG in the H1 timeframe.
2:Price might mitigate the bearish FVG and continue trading lower.
Either way, I’m always waiting on the other side of the charts for price to leave some footsteps.
I am currently waiting for a buy signal from my template.
However😂😂😂😂🤣🤣🤣🤣price just left a bullish fair value gap(price imbalance) in the M5 Timeframe.
Final war positions…
The first spike is out
I should see a bullish spike on the current small candle before 10:05 on the M15 timeframe.
Results
Price has mitigated the M15 bearish FVG. I’ll let the price play out for now… I’ll pull up the charts again in 3hrs
Boom500 Buy Signal
It’s currently 18:01and I Just placed my trades according the bullish FVG on the M15 timeframe and my template giving out a buy signal. Price hasn’t satisfied the directional bias as yet. It’s still ranging around the bullish FVG. See the chart below.
I opened 20 positions with 0.20 lot size. I did this so that I can fill the Imbalance with my orders and instead of opening 2 positions with lot size 1 and accrue a lot of losses from one specific level, it’s better to open my trades with the amount of positions that are still equivalent to lot size 2 in total.
Price has trade past the Imbalance it is currently trading in the middle of an M30 bullish order block. Price still hasn’t satisfied the buy signal that my template took out after I identified a Fair Value Gap. Conclusion, I’m still holding.
However, some of my opened orders are closed and will continue closing if price continues to fall.
I also see an M5 Timeframe bearish FVG that I missed. That’s the FVG that drove price down this hard and at that time, there’s another M1 bullish Order block that I identified.
This means that the bullish Order Block and the bullish FVG were invalid in this case. When price mitigated the bullish FVG, it went up a bit and mitigated the M15 bearish FVG then went down from there. I think that it’s headed for the Order block identified around the 4785.510 price level.
But I seriously didn’t think that price would fall that hard after mitigating the bearish M15 FVG because price didn’t fall
As price kept on falling to the point where it left my account at an initial balance of $5 from $113, I ended up analyzing for more reasons that wouldve drove the price that low without trading higher as a results of mitigating the FVG identified and the Order block. Price was actually looking to mitigate the support level, make a 123 touch on the downside before trading higher to the bearish OB identified on the H1 timeframe.
The reason why the bearish FVG was invalid was because it had no other bullish order block or FVG that would make a price continuation. And price had already created a 123 touch on the downside.
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