1. Current Market Structure
- Price is moving sideways within a tightening range.
- There is a series of lower highs (indicated by the upper blue descending trendline).
- Meanwhile, the lower trendline is rising, showing buyers still defending support.
- This creates a symmetrical triangle or wedge.
2. Price Behavior
- Multiple sell and buy markers appear near liquidity zones.
- The price recently tested both the upper trendline and the lower trendline.
- The area marked 1:2 Risk Reward indicates you planned a trade based on the bounce within the wedge.
3. Key Zones
- Upper Resistance Zone: The descending blue trendline. Price is rejected multiple times.
- Lower Support Zone: Rising trendline at the bottom with several bounces.
- Horizontal purple zones show previous supply/demand levels where reversals occurred.
4. Potential Scenarios
You drew two possible directions:
📈 Bullish Breakout Scenario
- If price breaks above the descending trendline, we could see:
- A push upward
- A retest on the trendline
- Then continuation higher
This matches the red arrow on top.
📉 Bearish Breakdown Scenario
- If price breaks below the ascending trendline, we may see:
- A sharp drop into the lower purple support zones
This matches the red arrow pointing downward.
5. What This Means
This is a classic compression pattern, meaning a large breakout is coming soon.
The market is gathering liquidity—once it breaks, momentum will likely be strong.
