Smart money is pushing $LA lower to build liquidity before a planned reversal to the upside.
I am looking at the current market data for $LA and I noticed a very clear setup forming based on order flow. Right now, the big accounts hold larger short positions compared to the long side. They entered their shorts higher up near the 0.123 level and have successfully driven the price down to around 0.111. Because the price has dropped so much, a lot of everyday retail traders are jumping in right now to sell, thinking the market will keep falling. However, big players usually trap these late sellers. They need this late selling pressure to build enough liquidity to flip the market direction. My trade plan is to enter a long position to catch this reversal. I am watching for the market makers to stop the downward push and quickly reverse the price back up to target the liquidity and trapped money resting at the higher levels. I want to take advantage of this shift in order flow while keeping my risk strictly managed.
Trade Plan
Entry: 0.1100
Stop Loss: 0.1080
Take Profit 1: 0.1120
Take Profit 2: 0.1140