Before you enter a trade, plan for three scenarios: price breaks market structure and moves higher from an order block, price finds support at a relative equal low, or price fills a Fair-Exchange gap. Start with higher-timeframe analysis to identify these reference areas.
A lot of people will look at this like, let's say if Price goes below here, this would be, you know, change of character. This is a market structure break. This is bos, this is cst, 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 FE 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 time frame 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 support for Price to 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 out from here, this is also a likely scenario. So currently we have scenario one, scenario two, and then scenario three.
