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USDCAD MARCH 3RD
We’ve had a higher time frame (HTF) break and retest, and the current price action around the inducement presents two potential scenarios. 1. Price moves back up to induce this push, respects the overall supply zone, and continues with the broader bearish bias. 2. Price fully shifts structure and does not respect the supply and confirms a bullish move is on our hands. In either case, we are expecting a short-term move to the upside before the next significant move. During the Asia session, we saw liquidity taken from the downside, followed by a bullish move with clear intent. That strengthens the case for upside continuation in the near term. From a fundamental perspective, considering current global conditions, the dollar index is likely to remain bullish. We can use that directional bias to our advantage when aligning our trade setups. We are currently seeing mitigation at the marked Smart Money Trap (SMT). If this level is respected and the SMT begins trapping sellers, we can expect price to move down toward our marked Break and Test (B&T) area. There are two ways to approach this setup: aggressive or conservative. Aggressive approach : Place a limit order at the Break and Test level to secure the optimal entry and maximize risk-to-reward. Conservative approach : Allow the inducement to play out and wait for confirmation before entering the trade. Both approaches are valid — it simply depends on your risk tolerance and trading style.
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USDCAD MARCH 3RD
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