CHZ is flashing major warning signs after a significant market structure break, and the writing is on the wall for a potential downturn. The current price action is screaming for a short, with all the indicators pointing towards a correction.
This CHZ short setup is looking particularly juicy, with the CHoCH signal indicating a clear break in market structure, while the CVD confirms that volume is backing the direction of the trade. The presence of a fair value gap and an order block, combined with a point of interest confluence, makes for a compelling narrative that this trade could play out in our favor. The overlap of these signals suggests a high probability of success.
With a 3.0% stop loss, which feels a tad tight given the volatility of CHZ, leverage will need to be carefully managed to avoid getting blown out of the trade prematurely.
It might be wise to take some profit off the table at the first target, as this will not only help lock in some gains but also reduce exposure and allow for a more aggressive push to the subsequent targets.
Not financial advice — always manage your own risk 🙏
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