Today, I want to share an interesting analysis based on multiple timeframes, where you can see how the market leaves clear clues before a potential move.
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๐ Market Context
The SHELL/USDT pair has been showing an upward movement on lower timeframes, forming higher highs and higher lows. However, upon reaching a key zone, the price action started to shift.
This is where the importance of watching multiple timeframes comes into play.
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๐ง Signals on Higher Timeframe (1D)
On the daily chart, something very important can be noted:
Candlesticks with long wicks on top
Constant rejection in a specific zone
Price's inability to stay above
๐ This indicates strong selling pressure and a possible relevant resistance zone.
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๐ Confirmation on Lower Timeframe (1H)
As we drop to 1H, the price starts to show clearer signals:
Loss of bullish strength
Break of minor structure
Price below the EMA
Consolidation without strong impulse
This suggests that the market could be gearing up for a bearish move.
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โ ๏ธ Current Scenario
Although the bias is starting to turn bearish, there's a key point:
๐ The movement still lacks sufficient strength
The price is in an intermediate zone, which can generate:
False entries
Lateral movements
Unexpected pullbacks
๐ป Scenarios to Consider
Scenario 1 (Short entry with higher probability):
Clear rejection at resistance zone / EMA
Formation of a bearish candlestick with intention
Continuation confirmation
Scenario 2 (Additional Confirmation):
Break of the recent low
Close below the level
Increase in bearish volume
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๐จ Risk to Avoid
Enter only on:
โ Being below the EMA
โ Sense of weakness
๐ This could result in a counter movement if there's no real confirmation.
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๐งฉ Conclusion
This analysis shows the importance of combining:
Higher timeframe for context
Lower timeframe for execution
Confirmation before entering
The market is already showing signs of weakness, but patience remains key to avoid premature entries.
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๐ฌ Question for the community
Would you wait for confirmation with a break of the low or would you enter on the rejection of the zone?
