I’m currently in sells on EURUSD.

Understanding a Current Trade Strategy

Identifying Market Conditions

• The trade is focused on following liquidity, with an emphasis on recognizing a smart money trap in a bearish market.

• Price action indicates a downward trend without breaking previous structures, suggesting the formation of weak lows.

Liquidity and Inducement

• The strategy involves identifying liquidity build-up through multiple touches of a trend line, which serves as the target for the trade.

• A high needs to be induced to mislead traders into thinking that prices are breaking higher before executing the trade.

Engineering Highs and Timeframes

• Due to the absence of significant highs, an engineered high was created within a key time window to tap into supply zones.

• Transitioning to the M1 timeframe reveals critical details about price movements and inducements.

Entry Strategy and Market Behavior

• The last demand zone led to a significant price push; entry was made during this test rather than waiting for a break test due to observed bullish structure (BOS).

• Candle patterns indicate strong seller intent followed by slow upward movement, building liquidity for potential downside moves.

Profit Targets and Risk Management

• The entry point was strategically placed at the mitigation of demand into supply zones with stops set above recent highs.

• Partial profits were taken at a 1:3 risk-to-reward ratio while targeting lower levels from previous days for final take profit at 1:6.