M15 Structure has confirmed a downward trend, waiting to sell!Overall, we can see that the price has touched the H4 supply zone, with multiple reactions at this level. The M15 timeframe has just confirmed a potential price decrease. Our action is to wait for a selling opportunity at the M15 supply zone as shown in the image.
Analysis based on supply and demand method:
1. Higher timeframe context: The chart shows a clear H4 supply zone at the top, which has been respected multiple times. This suggests strong selling pressure at higher levels.
2. Lower timeframe confirmation: The M15 timeframe has formed its own supply zone, aligning with the higher timeframe structure. This multi-timeframe confluence increases the probability of a successful trade.
3. Recent price action: The price has shown rejection from the H4 supply zone and has started to form bearish structures on the M15 timeframe. This indicates that sellers are gaining control.
4. Entry strategy: The plan to wait for a retest of the M15 supply zone before entering a short position is a prudent approach. It allows for a better risk-to-reward ratio and confirms the bearish momentum.
5. Potential targets: The chart shows multiple demand zones below the current price, which could act as potential profit-taking areas. These are marked as 1R, 2R, and 3R, offering increasingly favorable risk-to-reward ratios.
6. Risk management: A stop loss is placed above the M15 supply zone, which aligns with proper risk management principles in supply and demand trading.
This analysis suggests a high-probability selling opportunity based on the alignment of supply zones across multiple timeframes and recent price action confirmation.
