Chart Explanation
The chart you shared shows a technical analysis setup of price movement within a parallel ascending channel, along with Fibonacci retracement and extension levels, and marked liquidity zones. Let’s go through it step by step:
1. Price Trend and Market Structure
The chart indicates an upward trend, as the price moves higher while bouncing between support and resistance within the channel.
The current candles are bullish, indicating strong buying activity.
A breakout occurred from the consolidation area, and the price is now testing higher Fibonacci levels.
2. What Trading Candle is Formed?
If we examine closely, the current visible candle is a bullish impulse candle, characterized by a long blue body, showing significant buying momentum.
Prior to this, there were smaller indecision candles, but the breakout led to a continuation candle that's also bullish.
If the price tests the CP Zone (3,783.561 to 3,792.142), we may observe bullish rejection candles, like a hammer or pin bar, indicating a strong buying opportunity.
At the Liquidity Sell Zone (3,823.362 to 3,831.683), sellers may enter the market, so look for bearish rejection candles, such as a shooting star or bearish engulfing candles.
Right now, a bullish continuation candle has formed, but we should stay alert for reversal candles in the specified zones.
Key Levels from the Chart
The chart highlights key liquidity and retracement areas. Here’s a summary:
Buy Zones (Support Areas):
End Liquidity – OBS Buy Zone (3,770.110)
This is the strongest demand zone.
If the price drops here, it’s a potential high-probability buying opportunity.
Watch for bullish rejection candles, like a hammer or engulfing candle.
CP Zone – Retest Breakout ATH – Buy Zone (3,783.561 to 3,792.142)
This is an important breakout retest level.
If the price pulls back and shows bullish price action, expect the trend to continue upward.
It’s ideal for swing entries with low risk.
Sell Zones (Resistance Areas):
Liquidity Sell Zone (3,823.362 to 3,831.683)
This is a supply zone where sellers may come in.
The price could reverse or consolidate here.
If bearish candles appear, it becomes a solid short entry zone.
Intermediate Levels:
3,792.142 → Minor support, part of the CP Zone.
3,783.561 → Another key retest level.
Keep an eye on these for intraday pullbacks.
Price Movement Expectation
According to the chart arrows:
The price may first rise into the Liquidity Sell Zone (3,823 to 3,831).
After facing resistance, a pullback to the CP Zone (3,792 to 3,783) is likely.
If buyers hold this zone, the bullish trend may continue.
If the price falls below 3,770, a deeper correction could follow.
Buy and Sell Levels Summary
Buy Levels:
3,770.110 to 3,783.561 (End Liquidity & CP Zone)
Entry confirmation: Watch for bullish hammer, engulfing, or pin bar.
Targets: 3,823 to 3,831 zone.
Sell Levels:
3,823.362 to 3,831.683 (Liquidity Sell Zone)
Entry confirmation: Watch for bearish engulfing or shooting star.
Target: 3,792 to 3,783 zone.
Disclaimer
This analysis is for educational purposes only. Trading involves significant risk, and past performance does not guarantee future results. Always do your own research, manage risk using stop-loss orders, and never invest money you cannot afford to lose.
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