US100 Target Hit as we Predict ✌️💥😮

Introduction

This chart setup exemplifies a clean application of supply zone trading principles in the Nasdaq 100 (US100). The analysis focuses on price reacting within a marked resistance (supply) zone, triggering a significant sell-off as expected.

Trade Setup and Idea

1. Supply Zone Identification:
   • The red rectangle highlights a significant supply zone formed after a sharp bearish move (imbalance).
   • The price action retraces back into this zone, allowing for a potential reversal or continuation of the downward trend.
2. Key Elements on the Chart:
   • Bearish Impulse: The sharp decline before the retracement signals strong selling pressure.
   • Resistance Zone: The zone aligns with a prior distribution phase, acting as a high-probability reversal area.
   • Lower Highs and Trendline Break: A break of the structure in lower timeframes suggests the market is preparing for a bearish continuation.
3. Entry and Stop Placement:
   • Entry: Look for bearish confirmations, such as engulfing candles, wick rejections, or breakouts from the trendline support within the supply zone.
   • Stop-Loss: Place the stop above the supply zone to account for any potential false breakouts.
   • Target: Target the nearest demand zone or a Fibonacci extension level, as illustrated in the chart.
4. Outcome:
   • In this setup, the market respected the supply zone, and the price fell significantly, achieving the predefined target.

Conclusion

This setup showcases the importance of combining technical tools like supply/demand zones and structure analysis. A disciplined approach with precise execution leads to successful trades like the one illustrated here. Always practice proper risk management when implementing similar setups.