Chart Analysis Overview:
Market Structure:
The overall market appears to have formed a support zone at the lower end and a resistance zone at the upper range.
A prior bullish move led to a Fair Value Gap (FVG), highlighted as an area of potential institutional interest.
Fair Value Gap (FVG):
The FVG is marked as an imbalance area where price moved impulsively, suggesting unfilled orders. Traders might anticipate a return to this zone before resuming a trend…
[8:25 am, 16/05/2025] Awais Ali: It aims to capture a high-probability reversal
[0:02 pm, 17/05/2025] Awais Ali: This is a technical analysis chart for Ethereum (ETH) against the US Dollar (USD) on the 2-hour timeframe, shown on TradingView. Here's a detailed breakdown of the elements annotated in the chart:
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Chart Elements:
1. Price Action Trend:
The chart shows a previous descending price trend, followed by a rising channel, and then a sideways consolidation period (highlighted as "SIDEWAYS").
After the sideways movement, there is a breakout upwards, indicating a bullish momentum shift.
2. Support Zone:
A clear support zone is drawn around the $1,800 area. This is where the price consolidated before making a significant move upward.
3. CHoCH (Change of Character):
The chart marks a CHoCH, which signifies a change in market structure—typically indicating a potential reversal or start of a new trend.
4. OBB (Order Block Break):
This area represents a bearish order block that price revisited and respected before pulling back.
5. Trade Setup (Entry/Target):
Entry Zone: Around the $2,494 mark (current price level).
Stop-loss Zone: Below the entry zone, suggesting risk management.
Target Zone: Around $2,850, indicating a potential bullish target.
The trade setup suggests a long (buy) position with a favorable risk-to-reward ratio.
6. Overall Outlook:
The trader anticipates a bullish move based on the recent breakout, change of character, and retest of a key zone.
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Conclusion:
This chart represents a bullish outlook on ETH/USD, based on structure shifts, support/resistance zones, and a potential breakout continuation pattern. The trade idea involves buying near current levels with a target significantly higher and a stop-loss just below the recent structure.
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