NAS100USD: SMT Divergence Signals Reversal from Discount Pricing

22 May

Greetings Traders,
In today’s analysis, we are closely monitoring NAS100USD for a potential reversal of bearish institutional order flow. While the broader trend has been bearish, current price action presents strong confluence for a bullish shift, suggesting an opportunity to align with a possible upside move.

Market Context:
NAS100USD is currently trading in deep discount territory, which historically presents favorable conditions for institutional accumulation. We’ve observed a liquidity sweep—price took out previous sell stops—suggesting institutions may have order-paired against willing sellers at these discounted levels.

Key Observations:

• SMT Divergence with S&P500: While the S&P500 took out its previous low, NAS100USD remained above its corresponding low. This divergence signals underlying strength and institutional buying on NAS100USD, offering a strong indication of a reversal.
  
• Bullish Structure Hints: Minor breaks in market structure to the upside are emerging, further validating the bullish narrative.
  
• Institutional Support Zone: Price is currently trading inside a bullish order block that is also aligned with a Fair Value Gap (FVG)—a strong confluence zone that may act as support for continued upside movement.
  

Trading Strategy:

• Await confirmation of support holding within the order block and FVG zone.
  
• Target 1: Relatively equal highs just above current price action—an engineered liquidity pool where buy stops are likely resting.
  
• Target 2: The premium FVG, a key area of institutional interest where longs accumulated at a discount will be offloaded for profit. The area of fair value is an region where the institutions start to book their profits.
  

By reading the divergence, price action, and institutional behavior, we can strategically position ourselves to capitalize on a high-probability reversal.

Happy Trading,
The Architect 🏛📊

22 May

İşlem aktif

Position Running
Risk=1R
Potential Reward=4R

Refer:

Regards,
The_Architect

22 May

İşlem elle kapatılmış

Trade Closed - I close my trades at 11am NY Time, since the London session killzone has close.

Refer:

Regards,
The_Architect