a long scalp position on OP
Hi guys,
The reason behind this analysis is market psychology and price action.
When the price was falling towards the line, traders expected to support this level and price broke this level with a strong downtrend. Then there are bears who were thinking now we have a breakout from this level, this is going to play out as a strong supply zone to open short position when it pull backs.
In this situation both buyers and sellers got liquidated and when the price comes back, sellers want to get out of market breakeven and buyers want to add to their position.
Price action wise, this level has some base candles which shows it gathered enough liquidity and it is a price of interest to trade and volume supports this idea.
The reason behind this analysis is market psychology and price action.
When the price was falling towards the line, traders expected to support this level and price broke this level with a strong downtrend. Then there are bears who were thinking now we have a breakout from this level, this is going to play out as a strong supply zone to open short position when it pull backs.
In this situation both buyers and sellers got liquidated and when the price comes back, sellers want to get out of market breakeven and buyers want to add to their position.
Price action wise, this level has some base candles which shows it gathered enough liquidity and it is a price of interest to trade and volume supports this idea.