Smart Money Concepts (SMC) principles.

Smart Money Concepts (SMC) principles. Here’s a full breakdown of the chart and its annotations:

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Chart Details:
Pair: EUR/USD

Timeframe: 4-hour (H4)

Current Price: Around 1.16093 USD

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Key Annotations & Zones:


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Pink Zone (Supply/Resistance Area):
This area includes:

Accumulation

FVG (Fair Value Gap)

Price has recently entered and reacted from this zone.



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Buy Side Liquidity:
Highlighted at the top of the range.

Price swept above recent highs to trigger buy stops (liquidity grab), possibly setting up for a reversal.



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Sell Side Liquidity:
Marked below the previous consolidation range.

Price had previously dipped to collect sell-side liquidity before moving upward.



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Accumulation:
This phase occurred before the bullish breakout.

Suggests institutional buying or smart money positioning.



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FVG (Fair Value Gap):
Imbalance between buying and selling, typically gets filled.

Marked in the pink zone where price may return before continuing its move.

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Price Structure Analysis:
The chart shows a classic liquidity sweep setup:

Price grabs buy-side liquidity.

Enters a supply zone.

May return to fill the FVG.

Potential reversal or bearish reaction from this zone.

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Trading Implications:
Bearish Scenario:

Price may reject from the pink supply zone after the buy-side liquidity sweep, filling the FVG and possibly heading toward previous lows.

Bullish Scenario (less likely immediately):

If price holds above the pink zone, it could continue trending upward.