The trend must be aligned with the Zero Lag Trend Indicator as described in the script, which shows bearish momentum on 5 and 15-minute timeframes and bullish on higher timeframes like 60 minutes and 4 hours. Fibonacci retracement levels (e.g., 0.5, 0.618) must guide entries or pullback setups. Liquidity and FU Candles:
Liquidity zones are critical. The large wicks above previous swing highs are potential liquidity grabs, a sign of institutional moves. Look for FU candles where price spikes and then reverses sharply, indicating manipulation and institutional positioning. Imbalances:
Unfilled imbalances (areas where price moved strongly in one direction without retests) are likely to act as magnets for price action. Trade Setup: Entry Zone: Look for an entry near 2623-2624 (highlighted yellow zone on the chart). This area is supported by previous demand and coincides with the Fibonacci retracement levels (likely around 0.618). Stop Loss (SL): Place the SL below 2616 - 2620, which is the most recent low and below the potential liquidity grab. Take Profit (TP): TP1: 2633, aligning with the high of the recent bearish imbalance area. TP2: 2637, the next key Fibonacci level and near a potential liquidity cluster. Risk-Reward: Aim for a 1:3 or higher risk-to-reward ratio, consistent with institutional trading principles.