as we can see, and as iv been mentioning all week 4 hour order flow has been bullish. I was slightly concerned that it hadn't yet moved away from the order block but today provided a text book liquidity grab from sell side bellow the range it had been forming the last few trading days.
As we can see price formed a range. This forms liquidity on 3 levels.
1 - all the stop losses bellow the equal lows
2 - sell stops, tricking traders into thinking once price dropped out the bottom of the range it would continue.
3 - all the stop losses from the equal highs that get taken in the true move
But from experience and backtesting generally whatever side price breaks from the range first it will go in the opposite direction, ESPECIALLY if we do not get a candle close on that break.
Moving on from this todays price has gas another clean break of structure to the upside continuing bullish momentum.
As we can see price formed a range. This forms liquidity on 3 levels.
1 - all the stop losses bellow the equal lows
2 - sell stops, tricking traders into thinking once price dropped out the bottom of the range it would continue.
3 - all the stop losses from the equal highs that get taken in the true move
But from experience and backtesting generally whatever side price breaks from the range first it will go in the opposite direction, ESPECIALLY if we do not get a candle close on that break.
Moving on from this todays price has gas another clean break of structure to the upside continuing bullish momentum.