There was ALOT of liquidity resting above these wicks as you can see. It is natural for the market to take this liquidity before making a good move in the opposite direction. In the same zone as the liquidity, you see a price inefficient zone, a bearish fvg on the 1h timeframe. The blue box is the full 1h bear fvg, the black line is the 50% of the fvg. You take...
After it took out the liquidity, it needs to reject from a special block or zone. 50% of the 4h bull OrderBlock is the special block in this case. ENTRY 1 and 2 respect the Orderblock. Entry 3 was from the 15 min Bull OB indicated with a small blue box. You can take this trade and IF it would go back down to the 4h ob it just a loss of 1.5 pips -> RISK MANAGEMENT...
Because its was a bearish market, you wont be looking for long term buys. Just short term, in and out, 30 pips.
You see a massive bearish move, and you assume that it will target the wicks (where liquidity is resting).
The blue box is the full 4h bull OB. The black line is the 50% of the OB.
See Part 2 for a detailled look.
