3 Scenarios You MUST Plan For Before Entering a Trade 🔄

21 May 2025 · 1 min

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In this video Roman Ceccardi explains why traders must evaluate three possible price‑action scenarios before taking a position. He stresses the importance of starting analysis on higher timeframes and then drilling down to lower ones, using a recent market example that features a market‑structure break (BOS/CSD), relative equal lows converging on a February gap, and a bullish candle that validates an order block. By linking these elements, he outlines three distinct outcomes: (1) price finding support at the identified block and moving higher, (2) price reacting to the validated order block after the bullish close, and (3) an alternative scenario if the price breaks below the low. The commentary demonstrates how each scenario is derived from the same technical framework, illustrating a systematic approach to trade planning.

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A lot of people will look at this, like, let's say if price goes below here, this would be, you know, a change of character. This is a market structure break. This is BOS. This is CSD. This is whatever. All of this is happening. Yeah, sure. But happening into where? Well, in this case, you have relative equal lows heading into the February gap. And so this wouldn't be, you know, we wouldn't be caught off guard just purely by the fact that we have done our higher timeframe analysis. And this is why it's so important to start high and then go low. So currently, like, This seems to be the block that needs to be, you know, support for price to, you know, go higher. Or potentially the fact that yesterday's candle closed bullish means that this is now also an order block, right? This is a validated order block, which means if price actually just shoots up from here, this is also a likely scenario. So currently we have scenario 1, scenario 2, and then scenario 3.