Looking at the US30 charts, both daily and 4-hour timeframes suggest a potential trade setup:
On the daily chart, the US30 has shown a significant pullback to a level of interest marked by an earlier imbalance (FVG), sitting just above a larger underlying demand zone. The recent bullish candlestick formation suggests potential buying interest at this level.
The 4-hour chart reveals more granularity within this area of interest, with the price showing hesitance as it approaches the lower bounds of the demand zone. The presence of a 'BOS' (break of structure) suggests that the recent downtrend may be weakening, and coupled with a recovery above the 'OB' (order block), it could indicate an imminent shift in momentum to the upside.
Trade Idea: Looking for a long entry on a bullish confirmation above the 'OB' region, targeting previous highs marked by the '0' level on the daily chart. A protective stop would be prudent below the most recent 4-hour swing low to protect against any potential false breakouts or continuation of the downtrend. Always consider risk management and do not risk more than a small percentage of your trading capital on any single trade.
On the daily chart, the US30 has shown a significant pullback to a level of interest marked by an earlier imbalance (FVG), sitting just above a larger underlying demand zone. The recent bullish candlestick formation suggests potential buying interest at this level.
The 4-hour chart reveals more granularity within this area of interest, with the price showing hesitance as it approaches the lower bounds of the demand zone. The presence of a 'BOS' (break of structure) suggests that the recent downtrend may be weakening, and coupled with a recovery above the 'OB' (order block), it could indicate an imminent shift in momentum to the upside.
Trade Idea: Looking for a long entry on a bullish confirmation above the 'OB' region, targeting previous highs marked by the '0' level on the daily chart. A protective stop would be prudent below the most recent 4-hour swing low to protect against any potential false breakouts or continuation of the downtrend. Always consider risk management and do not risk more than a small percentage of your trading capital on any single trade.