NAS100 H4 TF Anaylsis

Chart Analysis

1. Market Structure Shifts (MSS):
   • Identified as areas where the market transitions from a bearish to a bullish trend or vice versa. These are pivotal points for possible trade setups.
   • Two MSS points are marked on the chart, one at the bottom (bullish shift) and one mid-trend (reconfirming a possible continuation).
2. Order Blocks (+OB):
   • Highlighted in both green (bullish OB) and red (bearish OB).
   • The green OB at the bottom represents a demand zone where buyers previously gained control, signaling a potential area for long entries.
   • The red OB represents a supply zone where sellers may dominate, marking a potential area for short entries.
3. Trendline and Liquidity Zones:
   • A descending trendline indicates bearish pressure, with liquidity traps ($$$) shown below recent lows and highs. These spots are likely to be targeted before a significant reversal.
4. Price Projections:
   • The chart suggests a possible scenario where price initially retraces towards the green demand zone (+OB) before rallying back up towards the red supply zone (+OB).
   • A large curved arrow indicates a potential bullish move after a retracement.

Potential Trade Setup

1. Long Position (Bullish Scenario):
   • Entry Zone: Green demand zone around 20,800.
   • Stop Loss: Below the demand zone to mitigate risk (e.g., 20,700).
   • Target: The red supply zone near 22,000 for a favorable risk-to-reward ratio.
2. Short Position (Bearish Scenario):
   • Entry Zone: Red supply zone around 22,000.
   • Stop Loss: Above the supply zone (e.g., 22,100).
   • Target: Back to the green demand zone or an intermediate liquidity zone.
3. Neutral Setup:
   • If price consolidates between these zones, wait for a breakout or breakdown before entering trades.

Introductory Summary

This H4 timeframe analysis highlights a structured approach to trading the NAS100 using supply and demand zones, liquidity sweeps, and market structure shifts. By aligning with key technical levels, traders can formulate precise entry and exit strategies while adhering to proper risk management principles.